Which of the following statements is correct?
A) Average variable costs always exceed average total costs.
B) Average fixed costs are constant.
C) Average variable cost reaches its minimum when average product equals its maximum.
D) Average fixed costs are always less than average variable costs.
Answer: C
Economics
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If average product is increasing, then marginal product
A. cannot be decreasing. B. must be increasing. C. must be greater than average product. D. must be less than average product. E. both a and c
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