Economics · Theory of Production and Cost
Which of the following statements correctly explains the relationship between Average Cost (AC) and Marginal Cost (MC) in the short run? 1. When MC is less than AC, AC is falling 2. When MC is greater than AC, AC is rising 3. MC intersects AC at its minimum point 4. AC intersects MC at its minimum point Select the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11 and 2 only
- 21, 2, 3 and 4
- 31, 2 and 3 only✓
- 42, 3 and 4 only
Correct answer
1, 2 and 3 only
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