If marginal cost is less than average total cost, then average total cost is decreasing.

Name: If marginal cost is less than average total cost, then average total cost is decreasing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the marginal cost is less than the average total cost, then producing additional units of output will have a lower cost than what has already been produced, which will decrease the average cost of production. Therefore, the statement that "average total cost is decreasing" is true.

If Marginal Cost Is Less Than Average Total Cost, Then