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If the short-run average variable costs of production for a firm are rising, then this indicates that:

Question:

If the short-run average variable costs of production for a firm are rising, then this indicates that:

A.

Average total costs are at a maximum.

B.

Average fixed costs are constant.

C.

Marginal costs are above average variable costs.

D.

Average variable costs are below average fixed costs.

Answer» c. Marginal costs are above average variable costs.

Note: The above multiple-choice question is for all general and Competitive Exams in India