2013 · Q26
26. If the average total cost is declining then :
General KnowledgeEconomics
- AThe marginal cost must be less than the average total cost
- BTotal cost must be constant
- CThe average fixed cost curve must be above the average variable cost curve
- DThe marginal cost must be greater than the average total cost.
Explanation
Falling ATC implies MC is below ATC; the official key marks A.