Asked by
Rashmi Sangwan
on Nov 04, 2024
Verified
If the marginal cost curve is below the average variable cost curve, then
A) average variable costs are increasing.
B) average variable costs are decreasing.
C) marginal cost must be decreasing.
D) average variable costs could either be increasing or decreasing.
Average Variable Costs
an economic measure representing variable costs (expenses that change with production levels) averaged over a quantity of output.
Marginal Cost Curve
A graphical representation showing how the cost to produce one additional unit of a good changes as the production volume is increased.
- Examine the consequences of output variation on total costs, marginal costs, and average costs.
Verified Answer
TS
Learning Objectives
- Examine the consequences of output variation on total costs, marginal costs, and average costs.