-Refer to the Graph Shown Above

question 31

Multiple Choice

-Refer to the graph shown above. Based on the information illustrated in the graph, which of the following is correct?

• A) marginal cost line must intersect the average cost line at the middle point of the average cost curve
• B) marginal cost of production is below the average cost for producing previous units
• C) producing one more unit is reducing average costs overall
• D) producing a marginal unit is increasing average costs overall