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What are the general principles about marginal and average total cost curves?
General principles which are always true concerning a firm’s marginal and average total cost curves as follows:
a. Average total cost is equal to marginal cost at the minimum-cost output.
b. Marginal cost is less than average total cost and average total cost are falling at output less than the minimum-cost output.
c. And marginal cost is greater than average total cost and average total cost is increasing at output greater than the minimum-cost output.
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