A factory manager observes that the average cost of producing their product has been steadily decreasing as they increase output. Based on this observation alone, the manager concludes that the cost of producing each additional unit must also be decreasing.
Which of the following statements best evaluates the manager's conclusion?
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A factory manager observes that the average cost of producing their product has been steadily decreasing as they increase output. Based on this observation alone, the manager concludes that the cost of producing each additional unit must also be decreasing.
Which of the following statements best evaluates the manager's conclusion?