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aliya0001 [1]
3 years ago
14

If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be

Business
1 answer:
Arlecino [84]3 years ago
8 0

Answer:

Less than average total Cost

Explanation:

Average total cost can be estimated as

(total fixed cost as well as variable costs )/ ( total units produced). It has a great impact on how a business is going to set up the price of their products. Marginal cost is can be regarded as alteration in total cost as a result of increase in unit of quantity produced. It should be noted that If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be Less than the average total cost

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