... average variable cost is increasing or decreasing? Explain. Chapter 7: The Costs of Production 88 If the average variable cost is increasing (decreasing), then the last unit produced is adding ... Before: 1.2 line,After: 1.2 line, Line spacing: 1.5linesChapter 7: The Costs of Production 85 a. If the owner of a business pays himself no salary, then the accounting cost is zero, but ... economic terms.Deleted: not Deleted: possesses certain Chapter 7: The Costs of Production 86 such as care of a child or elderly person at home, which would have had a value to those receiving...