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Economics, Microeconomics
Year 4
productivity
If the productivity of variable factors is decreasing in the short-run:
a. marginal cost must increase as output increases
b. average cost must decrease as output increases
c. average cost must increase as output increases
d. marginal cost must decrease as output increases
Answer a. seemed correct to me, but I wasn't sure about the average cost options. Please explain. Thank you for your help.
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