Which of the following statements regarding marginal analysis is​ true?  A.If total cost is​ falling, marginal cost must be positive. B.If total cost is​ rising, marginal cost must be rising. C.If total cost is​ rising, marginal cost could be falling. D.If total cost is​ falling, marginal cost could be zero.

Question
Asked Sep 12, 2019
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Which of the following statements regarding marginal analysis is​ true?
 
 
A.
If total cost is​ falling, marginal cost must be positive.
 
B.
If total cost is​ rising, marginal cost must be rising.
 
C.
If total cost is​ rising, marginal cost could be falling.
 
D.
If total cost is​ falling, marginal cost could be zero.
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Expert Answer

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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