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Use the figure below to answer the following questions. Cost [dollars] 150 100 50 5 10 15 20 Output (teapots per day) The above figure

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Use the figure below to answer the following questions. Cost [dollars] 150 100 50 5 10 15 20 Output (teapots per day) The above figure illustrates short-run average and marginal cost curves. Which one of the following statements is false? Select one: O Diminishing returns cause the marginal cost curve to slope upwards. Line B comes closer to line C as output increases because of a decrease in average fixed cost. Curve D is the marginal cost curve. O The vertical gap between curves B and C is equal to average variable cost. Average fixed cost decreases with output. Next page

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