Whenever marginal cost is below average cost,average cost must fall as output increases.

Name: Whenever marginal cost is below average cost,average cost must fall as output increases.
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Quizplus · Accepted Answer

This statement is true because if marginal cost is below average cost, it means that each additional unit produced is being produced at a lower cost than the average cost of all units produced so far. This will bring down the average cost as more units are produced.

Whenever Marginal Cost Is Below Average Cost,average Cost Must Fall