When marginal cost is below average variable cost, average variable cost must be:
A) above average total cost.
B) below average fixed cost.
C) falling.
D) rising.

Name: When marginal cost is below average variable cost, average variable cost must be: A) above average total cost. B) below average fixed cost. C) falling. D) rising.
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Question

Quizplus · Accepted Answer

When marginal cost is below average variable cost, it pulls the average variable cost down, causing it to fall.

When Marginal Cost Is Below Average Variable Cost, Average Variable