If the average total cost is decreasing as more and more units are produced, then the marginal...
Question:
If the average total cost is decreasing as more and more units are produced, then the marginal cost must be
A) rising.
B) constant.
C) negative.
D) below the average total cost.
E) equal to the average total cost.
Marginal Cost and Average Total Cost Curves:
The marginal cost curve depicts the additional costs that a firm incurs when additional units of a good are produced. The average total cost curve, on the other hand, depicts the total cost per unit when different quantities of a good are produced.
Answer and Explanation: 1
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The correct answer is: D) below the average total cost.
The average total cost curve is U-shaped and the marginal cost curve intersects it at its...
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Marginal Cost: Definition, Equation & Formula
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Chapter 3 / Lesson 12
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What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.
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