The key assumption required for us to use a linear variable cost funct

The key assumption required for us to use a linear variable cost function of the form VC = bq is that:

A) marginal cost must be constant and equal to b.
B) marginal cost must be increasing at rate b.
C) fixed costs must be zero.
D) marginal cost is always greater than average variable cost.

 

ANSWER

A

 

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