If a Firm Increases Its Output and Finds That Its

question 35

Multiple Choice

If a firm increases its output and finds that its average total cost decreases as a result, this implies that

• A) marginal cost exceeds average total cost.
• B) the cost of producing an additional unit of output is more than the average total cost.
• C) average fixed cost is increasing.
• D) average total cost exceeds marginal cost.

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