If marginal cost is positive and falling ?
Correct answer: B. Total cost is increasing at a falling rate
- A. Total cost is falling
- B. Total cost is increasing at a falling rate
- C. Total cost is falling at a falling rate
- D. Total cost is increasing at an increasing rate
Explanation
A positive marginal cost means each extra unit increases total cost, while falling marginal cost means those increases become progressively smaller. Therefore, total cost increases at a falling rate.
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