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| 1. |
What is the relationshipbetween marginal cost and average variablecost ? |
| Answer» Solution :If the average variable cost falls DUE to an increase in the output, the marginal cost is less than the average variable cost. If the average variable cost RISES due to an increase in the output, the marginal cost is more than the average cost. Marginal cost is EQUAL to the average variable cost when the marginal cost is minimum. | |