When Marginal Cost Is Less Than Average Total Cost

question 94

Multiple Choice

When marginal cost is less than average total cost,

• A)marginal cost must be falling.
• B)average variable cost must be falling.
• C)average total cost is falling.
• D)average total cost is rising.

---

Definitions:

European Union

A political and economic union of 27 European countries that are tied by a single market, common trade policy, and others, aiming for cooperation in various domains.

Economic Powers

Nations or entities that hold significant influence on global economic systems, often through their large economies, financial resources, and strategic trade relationships.

Mao Zedong

A Chinese communist revolutionary and the founding father of the People's Republic of China, serving as its first Chairman.

Communist

A person who supports or believes in the principles of communism, a socio-economic ideology that advocates for the common ownership of the means of production and the absence of social classes.