Economics · Theory of Cost
When the Average Cost (AC) of production is declining, how does the Marginal Cost (MC) behave in relation to the Average Cost?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Marginal Cost is equal to Average Cost
- 2Marginal Cost is greater than Average Cost
- 3Marginal Cost is less than Average Cost✓
- 4Marginal Cost is double the Average Cost
Correct answer
Marginal Cost is less than Average Cost
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