When Marginal Cost Is Less Than Average Cost

question 15

Multiple Choice

When marginal cost is less than average cost,

• A)marginal cost is rising.
• B)average cost is rising.
• C)marginal cost is falling.
• D)average cost is falling.
• E)both marginal cost and average cost are rising.

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Definitions:

Better Technology

Innovations or advancements in technology that significantly improve the efficiency, effectiveness, or capabilities of products, processes, or services.

Output

The total amount of goods or services produced by a company, sector, or economy.

Energy Input

Refers to the energy required to produce goods and services, including electricity, fossil fuels, and renewable sources.

Per Capita Energy Use

The average amount of energy consumed per person in a given area or country.