At Its Current Level of Output, a Firm's Average Cost

question 19

Multiple Choice

At its current level of output, a firm's average cost is $25 and its marginal cost is $20.If the firm increases output by one unit and marginal cost is $22, average cost will be

• A)greater than $25.
• B)equal to $25.
• C)less than $25.
• D)equal to marginal cost.