As long as the average variable cost of production is falling, _____.

Name: As long as the average variable cost of production is falling, _____.
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Question

Quizplus · Accepted Answer

When the average variable cost (AVC) of production is falling, it means that the cost of producing an additional unit (marginal cost, MC) is less than the AVC up to that point. This is because the AVC decreases only when the additional unit costs less to produce than what the average has been, pulling the average down.

As Long as the Average Variable Cost of Production Is