Tony's Taco Truck has an average variable cost of $1.50 and a marginal cost of $2 when it produces 50 units of output (tacos). We can conclude that the average variable cost of producing 51 tacos is
a. higher than $1.50

b. lower than $1.50.
c. equal to $1.50
d. either higher or lower than $1.50 depending on the direction of the marginal cost curve.


a

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