Answer :

Average cost is derived by dividing the total cost by the number of units produced while Marginal cost is the cost of producing one additional unit of output.

AC=Total cost/total Units

MC= cost of one additional unit output

Therefore when average cost increases meaning the output units increases and marginal cost becomes less than the average cost.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

When does the shiEconomics - Board Papers

What happens to tEconomics - Board Papers

Define fixed costEconomics - Board Papers

What is the relatEconomics - Board Papers