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Question


Even when marginal cost is rising, average variable cost may fall.

A
True
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B
False
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Solution

The correct option is A True
Even when marginal cost is rising, average variable cost may fall, as corresponding to output range LQ in diagram. AVC will fall even when MC is rising, so long as MC < AVC.
1279633_956781_ans_76323b99f4ef4a8e90fa838ff2f2694e.jpg

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