Consider the following statements when answering this question I. Whenever a firm's average variable costs are falling as output rises, marginal costs must be falling too. II. Whenever a firm's average total costs are rising as output rises, average variable costs must be rising too. A) I is true, and II is false. B) I is false, and II is true. C) I and II are both true. D) I and II are both false.

Consider the following statements when answering this question I. Whenever a firm's average variable costs are falling as output rises, marginal costs must be falling too. II. Whenever a firm's average total costs are rising as output rises, average variable costs must be rising too. A) I is true, and II is false. B) I is false, and II is true. C) I and II are both true. D) I and II are both false.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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