When average total cost is declining,then
A)marginal cost must be less than average total cost.
B)marginal cost must be greater than average total cost.
C)average total cost must be greater than average fixed cost.
D)average variable cost must be declining.

Question

Quizplus · Accepted Answer

When the average total cost is declining, it means that the additional units produced are being produced at a lower cost. This implies that the marginal cost of production is less than the average total cost.

When Average Total Cost Is Declining,then