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1. From the data provided it can be inferred that , for production levels in the range of 0 to 60 units:

  • A. MC is an increasing function of production quantity .
  • B. MC is an increasing function of production quantity .
  • C. MC is an increasing function of production quantity .
  • D. MC is an increasing function of production quantity .

Answer: Option A

Explanation:

It can be seen that the marginal cost is increasing as production quantify is increasing. So, option (a) is the correct ans.

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