1.9. Evaluate each of the following statements. If a statement is true, explain why; if it is...

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1.9. Evaluate each of the following statements. If a statement is true, explain why; if it is false, identify the mistake and try to correct it.

a. A decreasing marginal product tells us that marginal cost must be rising.

b. An increase in fixed cost increases the minimum-cost output.

c. An increase in fixed cost increases marginal cost.

d. When marginal cost is above average total cost, average total cost must be falling.

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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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