Marginal cost changes at a rate faster than average cost.

1.	Marginal cost changes at a rate faster than average cost.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :True. It happens because marginal cost is <a href="https://interviewquestions.tuteehub.com/tag/calculated-907694" style="font-weight:bold;" target="_blank" title="Click to know more about CALCULATED">CALCULATED</a> on the <a href="https://interviewquestions.tuteehub.com/tag/basisof-893695" style="font-weight:bold;" target="_blank" title="Click to know more about BASISOF">BASISOF</a> <a href="https://interviewquestions.tuteehub.com/tag/additional-367648" style="font-weight:bold;" target="_blank" title="Click to know more about ADDITIONAL">ADDITIONAL</a> unit only. Whereas,average cost is calculated on the basis of all the units.</body></html>

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