Suppose a firm's average total cost curve is decreasing with output. What can be said of...
Suppose a firm's average total cost curve is decreasing with output. What can be said of its marginal cost curve?
The firm's marginal cost curve must be
A.
intersecting the average total cost curve.
B.
increasing with output.
C.
below the average total cost curve.
D.
decreasing with output.
E.
horizontal.
Homework Answers
Ans) When average cost curve is decreasing, marginal cost curve lies below the average cost curve.
Option c
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