If Marginal Cost Is Less Than Average Total Cost

question 113

Multiple Choice

If marginal cost is less than average total cost:

• A) average total cost is increasing with output.
• B) average total cost is decreasing with output.
• C) average variable cost is increasing with output.
• D) average variable cost is decreasing with output.

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Definitions:

Cash Receipts

The total amount of cash collected by a business during a specific period, including revenues and other income.