In the Short Run, Suppose Average Total Cost Is a Straight

question 160

Multiple Choice

In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that:

• A) marginal cost is less than average total cost.
• B) average total cost is positive and constant.
• C) average total cost equals marginal cost.
• D) A and B are correct.
• E) B and C are correct.

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