If producing just one more tube of toothpaste makes Crest's average total cost fall, the marginal cost of that tube of toothpaste is

Question

Quizplus · Accepted Answer

When the production of an additional unit (in this case, a tube of toothpaste) causes the average total cost to fall, it means the marginal cost of that unit is less than the average total cost of the units produced before it. This is because the average total cost decreases only when the cost of producing an additional unit is lower than the current average, pulling the overall average down.

If Producing Just One More Tube of Toothpaste Makes Crest's