Asked by Elijah Price on Jul 16, 2024
Verified
If the average-total-cost curve is falling, then the marginal-cost curve must also be falling.
Average-total-cost Curve
A graphical representation that shows the average total cost of producing each quantity of output.
Marginal-cost Curve
The marginal-cost curve depicts how the cost of producing one additional unit of a good or service varies as production increases.
- Understand the difference between marginal cost, average total cost, and marginal product in the context of production and cost functions.
Verified Answer
SS
Shaquanda SmithJul 20, 2024
Final Answer :
False
Explanation :
The marginal-cost curve can be above or below the average-total-cost curve when it is falling. The average total cost falls when the marginal cost is below it, but the marginal cost itself can either be falling or rising.
Learning Objectives
- Understand the difference between marginal cost, average total cost, and marginal product in the context of production and cost functions.