Asked by Daniel Juarez on Apr 25, 2024
When marginal cost is less than average total cost,
A) marginal cost must be falling.
B) average variable cost must be falling.
C) average total cost is falling.
D) average total cost is rising.
Marginal Cost
The cost of producing an additional unit of a good or service.
Average Total Cost
Represents the per-unit total cost of production, calculated by dividing the total cost by the total quantity produced.
Falling
The process or action of moving downwards, typically used in economics to describe a decrease in prices or values.
- Acquire knowledge about the notions of total, fixed, variable, and marginal costs associated with production processes.
- Investigate the link between marginal cost, average total cost, and the scale of production efficiency.
Learning Objectives
- Acquire knowledge about the notions of total, fixed, variable, and marginal costs associated with production processes.
- Investigate the link between marginal cost, average total cost, and the scale of production efficiency.