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      Question

      When marginal cost is below average total cost, then:

      A Average total cost is falling Correct Answer Incorrect Answer
      B Average total cost is rising Correct Answer Incorrect Answer
      C . Marginal cost is constant Correct Answer Incorrect Answer
      D Total cost is maximized Correct Answer Incorrect Answer

      Solution

      Explanation: When marginal cost is below ATC, each additional unit lowers the average, causing ATC to fall.

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