If marginal cost is less than the average variable cost and output increases, average total cost _______ and average variable cost ________. OPTIONS: (i) decreases, increases (ii) increases, decreases (iii) increases, increases (iv) decreases, decreases

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 11MC
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If marginal cost is less than the average variable cost and output increases, average total cost _______ and average variable cost ________.

OPTIONS:

(i) decreases, increases

(ii) increases, decreases

(iii) increases, increases

(iv) decreases, decreases

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