If marginal cost is less than average total cost,then _____
A)marginal cost must be falling.
B)average total cost must be increasing.
C)average variable cost must equal average total cost.
D)average variable cost must be decreasing.
E)average variable cost may be increasing or decreasing.

Question

Quizplus · Accepted Answer

When marginal cost is less than average total cost, average total cost is decreasing. However, this does not necessarily determine the behavior of average variable cost, which can either be increasing or decreasing.

If Marginal Cost Is Less Than Average Total Cost,then _____