If marginal cost is less than average total cost,
A)average total cost is falling.
B)average total cost is constant.
C)average total cost is rising.
D)there is no way to determine if average total cost is falling,constant,or rising.

Question

Quizplus · Accepted Answer

If marginal cost is less than average total cost, it means that the next unit produced is adding less to the average total cost than the previous units. Therefore, the average total cost is falling.

If Marginal Cost Is Less Than Average Total Cost