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MrsAngelD MrsAngelD
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Posts: 322
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7 years ago
After employing her last laborer, Rachel notices that her Average Product has decreased. True or False: Her marginal cost is greater than her average variable cost.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
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wrote...
7 years ago
True. The decrease in average product indicates an increase in average variable cost. The average variable cost rises when the marginal cost is greater than the AVC.
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