If the marginal cost of producing the next unit of output is less than the average total cost, then
A) the average total cost curve is increasing.
B) the marginal cost curve is at its minimum.
C) the average total cost curve is decreasing.
D) the average total cost curve is at its minimum.

Question

Quizplus · Accepted Answer

If the marginal cost of producing the next unit of output is less than the average total cost, it means that the average total cost curve is decreasing. This is because the marginal cost is contributing less to the overall cost compared to the previous units produced, leading to a decrease in the average total cost.

If the Marginal Cost of Producing the Next Unit of Output