If marginal cost is less than average cost, at current levels of production, A. total cost is decreasing. B. average cost is increasing with output. C. average cost is decreasing with output. average cost is at a minimum.

If marginal cost is less than average cost, at current levels of production, A. total cost is decreasing. B. average cost is increasing with output. C. average cost is decreasing with output. average cost is at a minimum.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

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Question

If marginal cost is less than average cost, at
current levels of production,
A. total cost is decreasing.
B.
average cost is increasing with output.
C. average cost is decreasing with output.
D.
average cost is at a minimum.

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