Which of the following statements about the relationship between marginal cost and average cost is correct?
A. when MC is falling, AC is falling
B. AC equals MC and MC’s lowest point.
C. When MC exceeds AC, must be rising
D. When AC exceeds MC, MC must be rising
Answer:C
Which of the following statements about the relationship between marginal cost and average cost is correct?
A. when MC is falling, AC is falling B. AC equals MC and MC’s lowest point. C. When MC exceeds AC, must be rising D. When AC exceeds MC, MC must be rising