A falling average cost implies that
A)marginal cost is above average cost
B)marginal cost is below average cost
C)marginal cost is equal to average cost
D)none of the above

Question

​A falling average cost implies that
A)​marginal cost is above average cost
B)marginal cost is below average cost
C)marginal cost is equal to average cost
D)​none of the above

Quizplus · Accepted Answer

A falling average cost implies that the newest unit produced is cheaper to produce than the previous units, which means the marginal cost must be below the average cost.

​A Falling Average Cost Implies That

A Falling Average Cost Implies That