Exam Question
The relationship between Average Cost Curve and Marginal Cost Curve of a firm is
- 1. When AC is falling, MC is falling at a much faster rate and stays below AC
- 2. At lowest point of the AC curves MC becomes equal to AC
- 3. When AC starts rising, MC rises at a much faster rate and the MC curve is always above the AC curve
- 4. All the above
View Answer
Answer 1. When AC is falling, MC is falling at a much faster rate and stays below AC
Practice set and Exam Quiz
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