The Below Figure Shows the Various Combinations of the Goods

question 77

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Which of the following reflects the correct relationship between average total cost (ATC) and marginal cost (MC) ?

• A)When MC > ATC; ATC is falling.
• B)When ATC is minimum; ATC < MC.
• C)When MC < ATC; ATC is falling.
• D)When MC < ATC; ATC is constant.
• E)When ATC < MC; MC is falling.

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