If a Firm's Average Total Costs Fall as It Produces

question 188

Multiple Choice

If a firm's average total costs fall as it produces a larger output,

• A) average variable cost must also decline as output expands.
• B) marginal cost must also decline as output expands.
• C) average fixed cost must be less than average variable costs.
• D) marginal cost must be less than average total cost.

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