Exhibit 8-5 -If Average Fixed Cost Is Falling with Increasing Output, Then

question 109

Multiple Choice

Exhibit 8-5
-If average fixed cost is falling with increasing output, then

• A)marginal cost must be increasing.
• B)average total cost must be decreasing.
• C)average variable cost must be decreasing.
• D)total fixed cost must be constant.
• E)marginal cost must be decreasing.

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