When a firm increases its output by one unit, its average total cost (AC) decreased, this implies that: O Marginal cost (MC) = Average total cost (AC) O Average total cost (AC) < Average fixed cost (AFC) O Marginal cost (MC) > Average total cost (AC) O Marginal cost (MC) < Average total cost (AC)

When a firm increases its output by one unit, its average total cost (AC) decreased, this implies that: O Marginal cost (MC) = Average total cost (AC) O Average total cost (AC) < Average fixed cost (AFC) O Marginal cost (MC) > Average total cost (AC) O Marginal cost (MC) < Average total cost (AC)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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