Assume that the marginal cost​ (MC) of production is decreasingdecreasing. Can you determine whether the average variable cost​ (AVC) is increasing or​ decreasing? Explain.A.Regardless of whether MC is decreasingdecreasing​, AVC could be increasing or decreasing depending on whether MC is greater than or less than AVC.B.If MC is decreasingdecreasing​, then AVC must be decreasingdecreasing because MC equals the change in total variable cost.C.Regardless of whether MC is decreasingdecreasing​, AVC could be increasing or decreasing depending on whether MC is positive or negative.D.Even if MC is decreasingdecreasing​, AVC will be increasing because total variable cost​ (TVC) increases with output.E.MC and AVC are unrelated because MC depends on marginal inputs and AVC depends on variable inputs.

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