If marginal cost is below average total cost,what is happening to average total cost
A)It is constant.
B)It is falling.
C)It is rising.
D)It may rise or fall.

Question

Quizplus · Accepted Answer

When marginal cost is below average total cost, it means that the addition of one more unit is less expensive than the initial units produced, thus bringing down the overall cost per unit. Consequently, average total cost is falling.

If Marginal Cost Is Below Average Total Cost,what Is Happening