Which of the following statements is true?
a. Whenever marginal cost is below average total cost, marginal cost is decreasing.
b. Whenever marginal cost is above average total cost, marginal cost is decreasing.
c. Whenever marginal cost is above average total cost, average total cost is increasing.
d. When marginal cost equals average total cost, marginal cost is minimized
Ans: c. Whenever marginal cost is above average total cost, average total cost is increasing.
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