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Alexandria Thomas
on Dec 11, 2024

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Where marginal cost is less than average total cost,

A) opportunity cost must have been excluded from the calculation of marginal cost.
B) marginal cost must be falling.
C) marginal cost must be rising.
D) marginal cost may be rising, falling, or constant.

Average Total Cost

This refers to the total cost of production divided by the number of units produced, inclusive of fixed and variable costs.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

  • Gain insight into how marginal cost correlates with average total cost, average fixed cost, and average variable cost.
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Valerie ElayzzaDec 13, 2024
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