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Standard XII
Accountancy
Average Profit Method
When average ...
Question
When average cost is falling, marginal cost ____________.
A
may also be falling
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B
may be rising
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C
may be rising or falling
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D
has no relation with average cost
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Solution
The correct option is
D
may be rising or falling
Relationship between AC and MC curve shows that when AC is falling, MC may be rising or falling.
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