When MC $>$ ATC, ATC must rise.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
Whenever MC is greater than ATC, ATC is rising. When ATC reaches its minimum point, MC=ATC. Relationship between Short-run and Long-run Average Total Cos

Suggest Corrections

Similar questions

A T C

A F C

Draw average total cost, average variable cost, and marginal cost curves in a single diagram. Also, explain the relationship between ATC and AVC.

Explain the relation between (i) ATC and AVC and (ii) MC and AVC.

Assuming TFC is Rs 24. Complete the table:

$\begin{matrix} Output (units) & 1 & 2 & 3 ATC (Rs) & 50 & 40 & 45 AVC (Rs) MC (Rs) \end{matrix}$

Join BYJU'S Learning Program