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Due to the diminishing marginal returns in the short run production, for a typical firm, in the early phase of production A. average fixed cost

Due to the diminishing marginal returns in the short run production, for a typical firm, in the early phase of production

A. average fixed cost drops and average variable cost increases at a decreasing rate.

B. fixed cost remains constant and average variable cost increases.

C. average fixed cost drops and variable cost increases at a decreasing rate.

D. average fixed cost and average variable cost increase at a decreasing rate.

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