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In a certain plant, marginal cost is $2.00 at 400 units of output and it is $2.50 at 500 units of output. If output increases
In a certain plant, marginal cost is $2.00 at 400 units of output and it is $2.50 at 500 units of output. If output increases within this 400-to-500 range, then average cost:
A. must rise
B. must fall
C. must remain constant
D. may fall, may rise, but cannot remain constant throughout this output range
E. must fall and then rise
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