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A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15

Economics

A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it were to increase production to 21 units, which of the following must occur?

a. marginal cost would decrease

b. marginal cost would increase

c. average total cost would decrease

d. average total cost would increase

Option 1

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Option 2

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