When XYZ Corporation produces 35 units of output its average variable cost is $5 . The marginal cost of the 36th unit of output is $7 . If the firm chooses to produce the 36th unit of output, what will happen to average variable cost? Explain

What will be an ideal response?


If the firm decides to produce the 36th unit of output, its average variable cost will rise because the marginal cost is greater than the average variable cost.

Economics

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Economics