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Economics, Microeconomics
Year 4

marginal return


(i) Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input? (ii) Comment on the following statement: "Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs. Therefore, marginal cost is never greater than average cost."

By OTA:  Ramas Ramaswami, PhD

OTA Rating:  4.8/5

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