Q. 12 A

Note: The f

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.

PREVIOUS(a) Why is NEXTDefine ‘‘de

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