A firm is producing 20 units with an average total cost of $25 and a marginal cost
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A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it increases production to 21 units, which of the following must occur?
a. Marginal cost will decrease.
b. Marginal cost will increase.
c. Average total cost will decrease.
d. Average total cost will increase.
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