Question: Statement 1: AVC can never be higher than ATC. Statement 2: AVC and marginal cost are equal at an output of one __________. a) Statement

Statement 1: AVC can never be higher than ATC. Statement 2: AVC and marginal cost are equal at an output of one __________.

a) Statement 1 is true, and statement 2 is false.

b) Statement 2 is true, and statement 1 is false.

c) Both statements are true.

d) Both statements are false.

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