Asked by Massiel Murga on Sep 23, 2024
If marginal costs fall below average cost,average cost must be
A) Be increasing
B) Be decreasing
C) Stay constant
D) None of the above
Marginal Costs
The extra expense associated with the production of an additional unit of a product or service.
Average Cost
The total cost of production divided by the quantity of output produced, representing the per unit cost of production.
- Expound on the relationship between marginal cost and average cost, and what it implies for the characteristics of cost fluctuations.
Learning Objectives
- Expound on the relationship between marginal cost and average cost, and what it implies for the characteristics of cost fluctuations.