Which of the Following Statements Is True Regarding the Relationship

question 17

Multiple Choice

Which of the following statements is true regarding the relationship between average and marginal cost functions?

• A)When average cost is a decreasing function of output,marginal cost is greater than average cost.
• B)When average cost neither increases or decreases (because it is constant or at a minimum point),marginal cost is equal to average cost
• C)The average cost function is always smaller than the marginal cost function
• D)The average cost function is always greater than the marginal cost function
• E)When average cost is an increasing function of output,marginal cost is less than average cost