Suppose a Firm Increases Output by One Unit

question 158

Multiple Choice

Suppose a firm increases output by one unit.Which of the following statements is true?

• A)total cost will increase by an amount equal to average variable cost
• B)total cost will increase by an amount equal to the marginal cost
• C)variable cost will increase by an amount equal to marginal cost
• D)average fixed cost will stay constant

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Hill Side

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