If AFC is falling then MC must be
A)rising.
B)falling.
C)above AFC.
D)below AFC.
E)none of the above

Name: If AFC is falling then MC must be A)rising. B)falling. C)above AFC. D)below AFC. E)none of the above
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Question

Quizplus · Accepted Answer

AFC (Average Fixed Cost) is unrelated to MC (Marginal Cost). AFC falls as output increases due to fixed costs being spread over more units, while MC is determined by variable costs and can rise or fall independently.

If AFC Is Falling Then MC Must Be