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The Cost C\mathrm{C} , of Producing qq Items Is Given by the Formula

Question 112

Multiple Choice

The cost, C\mathrm{C} , of producing qq items is given by the formula C=C0+mqC=C_{0}+m q , where C0C_{0} and mm are positive constants. If the quantity produced decreases, what happens to the cost of production?


A) It increases.
B) It stays the same.
C) It decreases.
D) Cannot tell without knowing the values of C0C_{0} and mm .

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