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Average costs fall at all levels of output are falling when marginal costs are below average costs and rising when marginal costs are above average

Average costs

  1. fall at all levels of output

  2. are falling when marginal costs are below average costs and rising when marginal costs are above average costs

  3. are falling when marginal costs are above average costs and rising when marginal costs are below average costs

  4. does not vary with output

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