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Carefully Explain If the Following Statements Are True,false,or Uncertain

Question 45

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Carefully explain if the following statements are true,false,or uncertain.

Premises:

Responses:

Marginal costs decrease as output increases because the firm can spread fixed costs over more units.

False

If average cost is increasing,marginal cost must be increasing.

True

If there are diminishing returns,the marginal cost curve must be positively sloped.

Premises:

Marginal costs decrease as output increases because the firm can spread fixed costs over more units.

If average cost is increasing,marginal cost must be increasing.

If there are diminishing returns,the marginal cost curve must be positively sloped.

Responses:

False

True

Correct Answer:

Premises:

Responses:

Marginal costs decrease as output increases because the firm can spread fixed costs over more units.

If average cost is increasing,marginal cost must be increasing.

If there are diminishing returns,the marginal cost curve must be positively sloped.

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