If average cost is decreasing,then marginal cost
A)Must be increasing
B)Must be greater than average cost
C)Must be less than average cost
D)None of the above

Question

If average cost is decreasing,then marginal cost ​
A)​Must be increasing
B)Must be greater than average cost
C)Must be less than average cost
D)​None of the above

Quizplus · Accepted Answer

If the average cost is decreasing, it means that each additional unit of output is cheaper to produce on average than the previous one, which indicates that the marginal cost is less than the average cost. Therefore, the best choice is C.

If Average Cost Is Decreasing,then Marginal Cost ​

If Average Cost Is Decreasing,then Marginal Cost