Marginal cost is less than the average cost when average cost falls with
Answers
Relationship to marginal cost. When average cost is declining as output increases, marginal cost is less than average cost. When average cost is rising, marginal cost is greater than average cost. When average cost is neither rising nor falling (at a minimum or maximum), marginal cost equals average cost.
plz mark it as brainliest!!!!!!!!!!!!!!!!!!!!!!!
Just like everything else is related and interconnected, the marginal cost and the average cost in the production process and economy are interrelated. There is a main part of the economy which results in the connection of the marginal and average cost, it is the output.
An increase in output leads to a decline in average cost and the marginal cost is less than the average cost in this situation.
A rise in average cost means the marginal cost is greater than the average cost.
Neither a rise nor a fall in average cost means the marginal cost is equal to the average cost.