Statement I: Average total cost can be found by dividing output by total cost.
Statement II: At one unit of output marginal cost is always zero.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Statement I is false because average total cost is found by dividing total cost by output, not the other way around. 
Statement II is false because marginal cost can be zero, but it is not always zero at one unit of output.

Statement I: Average Total Cost Can Be Found by Dividing