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October 24, 2014

Homework Help: Microeconomics

Posted by Nicci on Thursday, January 26, 2012 at 1:52pm.

When average total cost is declining then:
a) marginal cost must be less than average cost
b) marginal cost must be greater than average cost
c) average toal cost must be greater than average fixed cost
d) average variable cost must be declining.

My answer is d but my friend thinks a so now i'm not sure as the example i have both fit!

Thanks

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