-If average cost is declining,then:
A)marginal cost must be greater than average cost
B)the average fixed cost curve must lie above the average variable cost curve
C)the average fixed cost curve must lie below the average variable cost curve
D)total cost must also be declining
E)marginal cost must be less than average cost

Question

-If average cost is declining,then:
A)marginal cost must be greater than average cost 
B)the average fixed cost curve must lie above the average variable cost curve 
C)the average fixed cost curve must lie below the average variable cost curve 
D)total cost must also be declining 
E)marginal cost must be less than average cost

Quizplus · Accepted Answer

When average cost is declining, it means the additional unit of production (marginal cost) is costing less than the average of all units produced up to that point, thus pulling the average cost down.

-If Average Cost Is Declining,then