Consider the following statements when answering this question   I. Whenever a firm's average variable costs are falling as output rises, marginal costs must be falling too.   II. Whenever a firm's average total costs are rising as output rises, average variable costs must be rising too.   A) I is true, and II is false.   B) I is false, and II is true.   C) I and II are both true.   D) I and II are both false.

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
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Chapter21: Production And Costs
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Consider the following statements when answering this question

 

I. Whenever a firm's average variable costs are falling as output rises, marginal costs must be falling too.

 

II. Whenever a firm's average total costs are rising as output rises, average variable costs must be rising too.

 

A) I is true, and II is false.

 

B) I is false, and II is true.

 

C) I and II are both true.

 

D) I and II are both false.

 

Please provide an explanation, thank you!

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