When marginal costs are increasing:
A. a firm is experiencing diminishing returns.
B. average cost is always increasing.
C. average cost is always decreasing.
D. marginal costs are always greater than average costs.
Answer: A
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A. decrease at an increasing rate with the increase in pollution abatement. B. increase at an increasing rate with the increase in pollution abatement. C. decrease at a decreasing rate with the increase in pollution abatement. D. increase at a decreasing rate with the increase in pollution abatement.