Asked by
Yousef Ibrahim
on Oct 12, 2024Verified
If marginal cost is less than average total cost,
A) average total cost is falling.
B) average total cost is constant.
C) average total cost is rising.
D) there is no way to determine if average total cost is falling,constant,or rising.
Average Total Cost
The total cost of production divided by the number of units produced, representing the average cost per unit.
Marginal Cost
The uptick in complete expenditure resulting from the creation of one more unit of a product or service.
- Grasp the linkage between marginal cost, average variable cost, and average total cost.
Verified Answer
ML
Learning Objectives
- Grasp the linkage between marginal cost, average variable cost, and average total cost.