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Cook Co.s plant operates at 85% capacity. If inputs increase by one-sixth, additional output increases by one-twelfth. If inputs decrease by one-sixth, additional output decreases
Cook Co.s plant operates at 85% capacity. If inputs increase by one-sixth, additional output increases by one-twelfth. If inputs decrease by one-sixth, additional output decreases by one-twelfth. What best describes the relationship of Cooks average and marginal costs at 85% capacity?
Average cost is equal to marginal cost. | ||
Average cost is greater than marginal cost. | ||
Average cost is less than marginal cost. | ||
The relationship is indeterminate with the given informatio |
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