if average total cost is falling as output increases then ma

if average total cost is falling as output increases, then marginal costs must be falling as well (T or F)

Solution

Average total cost=Total cost/Units of output

As units of output rises ,average total cost falls

Marginal cost=Change in total cost / change in output

Marginal cost curve intersects Average cost curve at its minimum.

When Average cost curve was falling,Marginal cost curve had already statred rising.

So its a false statement.

if average total cost is falling as output increases, then marginal costs must be falling as well (T or F)SolutionAverage total cost=Total cost/Units of output

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