If firm's average cost is falling then marginal curve must be:

CA Foundation · Business Economics · MTP · September 2026
If firm's average cost is falling then marginal curve must be:
(A) A. falling
(B) B. Rising
(C) C. below average cost curve
(D) D. None of the above

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. below average cost curve

Topics: Theory of Production and Cost

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