When marginal costs are below average total costs ?
Correct answer: B. average total cost is falling
- A. average fixed cost is rising
- B. average total cost is falling
- C. average total cost is raising
- D. average total cost is minimized
Explanation
When marginal cost is below average total cost, it pulls the average downward, just as a value below an average lowers that average. Thus average total cost is falling.
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