Question

Explain the relationship between marginal cost and average cost with the help of schedule.

​

Answer 1

Answer:

This relationship should be carefully understood. When the average cost is falling, the marginal cost is less than the average cost and when average cost is rising, the marginal cost is higher than the average cost. But if marginal cost neither goes up nor comes down, the average and marginal costs are equal

Answer 2

Answer:

This relationship should be carefully understood. When the average cost is falling, the marginal cost is less than the average cost and when average cost is rising, the marginal cost is higher than the average cost. But if marginal cost neither goes up nor comes down, the average and marginal costs are equal.