CUET Preparation Today
In long run as long as average cost is falling, marginal cost must be less than the ...... |
Total Fixed Cost. Average Variable Cost. Average cost. Total Cost. |
Average cost. |
The correct answer is Option (3) → Average cost. In the long run, and for any average curve (be it Average Cost, Average Total Cost, Average Variable Cost, or Average Product), the relationship between the average and marginal curve is consistent:
The question states "as long as average cost is falling". According to the rule above, for the average cost to be falling, the marginal cost must be less than the Average cost. |
