If the total variable cost of 9 units of output is $90 and the total variable cost of 10 units of output is $120, then:
A. the average variable cost of 10 units is $10.
B. the average variable cost of 9 units is $10.
C. the marginal cost of the tenth unit is $90.
D. the firm is operating in the range of increasing marginal returns.
Answer: B
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