Posted by **Nicci** on Thursday, January 26, 2012 at 1:52pm.

When average total cost is declining then:

a) marginal cost must be less than average cost

b) marginal cost must be greater than average cost

c) average toal cost must be greater than average fixed cost

d) average variable cost must be declining.

My answer is d but my friend thinks a so now i'm not sure as the example i have both fit!

Thanks

## Answer this Question

## Related Questions

- Economics - 1. The law of diminishing returns implies that at some output level...
- math/economics in calculus - The average cost of manufacturing a quantity q of a...
- Econ - A firm faces the following Average Cost function AC=1500Q^-1 + 300-27Q+1....
- Economics - The market for fertilizer is perfectly competitive. Firms in the ...
- Economics - Suppose that a firm is currently employing 30 workers, the only ...
- Economics - Suppose that a firm is currently employing 30 workers, the only ...
- econ - You want to determine the profit-maximizing production quantity for a ...
- Macroeconomics - You want to determine the profit-maximizing production quantity...
- Macroeconomics - I need help to answer this question? You want to determine the ...
- math - The average cost of manufacturing a quantity q of a good, is defined to ...

More Related Questions