Which of the following must be true if average total costs are declining?
A) Marginal cost is less than average total cost.
B) Marginal cost is less than average variable cost.
C) Marginal cost is greater than average total cost.
D) Marginal cost equals average total cost.

Question

Quizplus · Accepted Answer

When average total costs are declining, it means that the marginal cost is less than the average total cost. This is because the marginal cost pulls the average down when it is below the average.

Which of the Following Must Be True If Average Total