If the marginal cost is above the average cost at a certain level of production and the firm decides to increase output, then: a. The average cost will increase but the marginal cost will decrease. b. Both the average and the marginal cost will increase. c. The average cost will increase but the average cost will decrease. d. Both the average and the marginal cost will decrease.

If the marginal cost is above the average cost at a certain level of production and the firm decides to increase output, then: a. The average cost will increase but the marginal cost will decrease. b. Both the average and the marginal cost will increase. c. The average cost will increase but the average cost will decrease. d. Both the average and the marginal cost will decrease.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 1PA

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