Economics · Cost Concepts and Marginal Cost
Which of the following statements correctly describes the relationship between average cost (AC) and marginal cost (MC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1When average cost is falling, marginal cost must be zero
- 2When average cost is rising, marginal cost lies above the average cost✓
- 3When average cost is rising, marginal cost must be falling
- 4When average cost is rising, marginal cost must also be constant
Correct answer
When average cost is rising, marginal cost lies above the average cost
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost Concepts and Marginal Cost MCQs →Want more practice questions on Cost Concepts and Marginal Cost?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Cost Concepts and Marginal Cost