The average total cost (ATC)curve will be downward sloping so long as
A)Average variable cost is less than average total cost.
B)Marginal cost is greater than average total cost.
C)Average fixed cost is less than average total cost.
D)Marginal cost is less than average total cost.

Question

Quizplus · Accepted Answer

The ATC curve slopes downward when the marginal cost (MC) is less than the average total cost (ATC) because the addition of lower-cost units pulls the average cost down.

The Average Total Cost (ATC)curve Will Be Downward Sloping So