Question: Evaluate each of the following statements. If a statement is true, explain why; if it is false, identify the mistake and try to correct it.
Evaluate each of the following statements. If a statement is true, explain why; if it is false, identify the mistake and try to correct it.
a. A decreasing marginal product tells us that marginal cost must be rising.
b. An increase in fixed cost increases the minimum-cost output.
c. An increase in fixed cost increases marginal cost.
d. When marginal cost is above average total cost, average total cost must be falling.
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