​If Marginal Cost Is Lower Than Average Cost (AC),average Cost

question 9

Multiple Choice

​If Marginal cost is lower than Average Cost (AC) ,average cost is

• A)​falling
• B)rising
• C)constant
• D)​none of the above

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Definitions:

Marginal Rates of Substitution

The speed at which a buyer is prepared to sacrifice one item for another while keeping their satisfaction constant.

Bads

Are items that people do not desire to have, opposite to goods, which have a negative impact on utility when consumed.

Indifference Curves

Graphical representations in microeconomics showing different bundles of goods between which a consumer is indifferent.

Indifference Curves

Indifference Curves represent combinations of two goods that provide the consumer with the same level of satisfaction or utility, illustrating trade-offs in consumption choices.