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In: Economics

Which of the following is always downward-sloping? Multiple Choice The average total cost curve when it...

Which of the following is always downward-sloping?

Multiple Choice

  • The average total cost curve when it is above the marginal cost curve.

  • The marginal cost curve when it is above the average total cost curve.

  • The average total cost curve when it is below the marginal cost curve.

  • The marginal cost curve when it is below the average total cost curve.

Solutions

Expert Solution

The right answer is the average total cost curve when it is above the marginal cost curve, when average total cost curve is above the marginal cost curve it is always downward sloping because when marginal cost is less than the average total cost then the average total cost decreases with the increase in output.

Rahul Sunny answered 2 years ago
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