The marginal cost curve:
a. Declines initially as output increases and rises with further increases in output
b. Is equal to the average variable cost curve
c. Rises initially as output increases and declines with further increases in output
d. Is always constant
Question 2
The marginal decision rule will be replaced with the net present value rule when:
a. costs and benefits occur at approximately the same time
b. costs are incurred immediately
c. benefits are incurred immediately
d. the marginal decision rule is never replaced
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