Assuming fixed costs are positive, over a range of output in which average total costs were constant,
a. average variable costs would be constant as output increases.
b. average variable costs would be falling as output increases.
c. average variable costs would be rising as output increases.
d. marginal cost would be less than average variable cost.
c
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What will be an ideal response?
Which of the following is an example of free riding?
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Economists use the terms neutral good and normal good interchangeably
Indicate whether the statement is true or false