Question

Asked Sep 12, 2019

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Which of the following statements regarding marginal analysis is true?

If total cost is falling, marginal cost must be positive.

If total cost is rising, marginal cost must be rising.

If total cost is rising, marginal cost could be falling.

If total cost is falling, marginal cost could be zero.

To sum up, marginal analysis is described as the cost of identifying the level of output at an additional unit related to the total revenue concerning the total cost is equal and beyond profit can occur. The Total cost is defined as the sum of all marginal costs in addition to the fixed cost. If at all the firm is facing a constant marginal...

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