Short-run average cost is
A)always greater than long-run average cost.
B)always less than long-run average cost.
C)less than short-run marginal cost when short-run marginal cost is decreasing.
D)both a and c
E)none of the above

Question

Quizplus · Accepted Answer

Short-run average cost can be either greater than, equal to, or less than long-run average cost depending on the circumstances, and it is not necessarily less than short-run marginal cost when short-run marginal cost is decreasing.

Short-Run Average Cost Is