When marginal cost of another unit ofoutput is less than the current value of av

Question

When marginal cost of another unit ofoutput is less than the current value of average total cost,producing another unit of output:
A.   Decreases average total cost B.   Increases average fixed cost C.   Increases average total cost D.   Has no effect on average totalcost When marginal cost of another unit of output is less than the current value of average total cost, producing another unit of output: A. Decreases average total cost B. Increases average fixed cost C. Increases average total cost D. Has no effect on average totalcost

Explanation / Answer

If marginal cost is less then the average total cost then producinganother unit would lower the average total cost. answer A

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