You observe that at your current production of rutabaga, the average total cost of producing rutabaga is $1 and the marginal cost of producing rutabaga is $2. What should always happen if you increase rutabaga production?
A. Marginal cost will fall.
B. Average total cost will rise.
C. Average total cost will fall.
D. Both Marginal cost will fall and Average total cost will rise are correct.
Answer: B
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