If average variable cost exceeds marginal cost, then: both the average variable

Option (a). When MC < AVC, both AVC is falling and ATC is falling.

ID: 1225991 • Letter: I

Question

If average variable cost exceeds marginal cost, then:

both the average variable and average total cost are decreasing.

the average variable cost is decreasing and the average total cost is increasing.

average variable cost is increasing and the average total cost is decreasing.

the average variable cost is decreasing and the average total cost may be increasing or decreasing.

both the average variable and average total cost are decreasing.

the average variable cost is decreasing and the average total cost is increasing.

average variable cost is increasing and the average total cost is decreasing.

the average variable cost is decreasing and the average total cost may be increasing or decreasing.

Option (a).

When MC < AVC, both AVC is falling and ATC is falling.

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