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Currently, Discount Tire Shop's marginal cost curve is higher than the average total cost curve. This implies that Discount Tire Shop's average total cost curve:

Currently, Discount Tire Shop's marginal cost curve is higher than the average total cost curve. This implies that Discount Tire Shop's average total cost curve:

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must be falling.

must be rising.

may be rising, falling, or flat depending on other things.

must be flat.

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