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Emmа, а cоst аnalyst fоr Hоosier Popcorn Co., observes that when the factory is producing 700 bags of kettle corn per hour, the marginal cost is 40 cents ($0.40) while the average variable cost is 45 cents ($0.45). Based on this, Emma concludes that average total costs must be _________ and average variable costs must be ______________ as production increases beyond 700 bags per hour.