When average cost (AC) is falling:

CA Foundation · Business Economics · MTP · June 2024
When average cost (AC) is falling:
(A) A. MC < AC
(B) B. MC > AC
(C) C. MC = AC
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. MC < AC

Topics: Theory of Production and Cost

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