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Unformatted text preview: Finally, if average variable cost is not falling or rising, marginal cost equals average cost. 2) If average variable costs are constant, what must be true of variable costs? Average variable cost means that the variable cost is divided by total output. Variable cost means that a cost varies with the level of an activity; the sum of all payments made to the firms variable factors of production. If average variable costs are constant, then variable costs will remain the same....
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This note was uploaded on 03/21/2012 for the course ECO 201 taught by Professor Dunlevy during the Spring '08 term at Miami University.
- Spring '08