A firm spends $400 to produce 20 units of output and spends $880 toproduce 40 units of output. Which statement is true?

A firm spends $400 to produce 20 units of output and spends $880 toproduce 40 units of output. Which statement is true?

(A) The firm’s average cost curve lies above its marginal cost curve somewhere between Q=20 and Q=40

(B) The firm’s average cost curve lies below its marginal cost curve somewhere between Q=20 and Q=40

(C) The firm’s average cost and marginal cost curves cross between Q=20 and Q=40

(D) None of the above statements is true

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