Average cost must exceed marginal cost at the point when average cost

1.	Average cost must exceed marginal cost at the point when average cost is minimum.
Answer» <html><body><p></p>Solution :False. When average cost is minimum, It is equal to <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> cost. So when average cost does not change,then MC=<a href="https://interviewquestions.tuteehub.com/tag/ac-361271" style="font-weight:bold;" target="_blank" title="Click to know more about AC">AC</a>. It happens when falling AC <a href="https://interviewquestions.tuteehub.com/tag/reaches-1178076" style="font-weight:bold;" target="_blank" title="Click to know more about REACHES">REACHES</a> its <a href="https://interviewquestions.tuteehub.com/tag/lower-1080637" style="font-weight:bold;" target="_blank" title="Click to know more about LOWER">LOWER</a> <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a>.</body></html>

Average cost must exceed marginal cost at the point when average cost is minimum.