If Marginal cost is lower than Average Cost (AC),average cost is
A)falling
B)rising
C)constant
D)none of the above

Name: If Marginal cost is lower than Average Cost (AC),average cost is A)falling B)rising C)constant D)none of the above
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Question

​If Marginal cost is lower than Average Cost (AC),average cost is
A)​falling
B)rising
C)constant
D)​none of the above

Quizplus · Accepted Answer

If the marginal cost is lower than the average cost, then each additional unit produced is cheaper than the average of all units produced so far. This will cause the average cost to decrease, resulting in a falling average cost curve.

​If Marginal Cost Is Lower Than Average Cost (AC),average Cost

If Marginal Cost Is Lower Than Average Cost (AC),average Cost