Economics · Cost Curves
Which of the following statement(s) is/are true regarding Average Cost (AC) and Marginal Cost (MC)? (A) If MC is less than AC, AC will be decreasing; and if MC is greater than AC, AC will be increasing. (B) If AC is decreasing, MC must always be decreasing; and when AC is increasing, MC must always be increasing. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only (B) is true
- 2Only (A) is true✓
- 3Both (A) and (B) are false
- 4Both (A) and (B) are true
Correct answer
Only (A) is true
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