Which of the following statement about the relationship between marginal cost and average cost is correct?

when MC is falling, AC is falling.

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

AC equals MC and MC's lowest point.

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

When MC exceeds AC, MC must be rising.

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

When AC exceeds MC, MC must be rising.

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

Open in App

Solution

The correct option is C When MC exceeds AC, MC must be rising.
solution:
from the given figure we can say that when MC exceeds , MC must be rising .
hence the correct option: C

Suggest Corrections

Similar questions

Explain the relationship between AC and MC. Can the AC curve fall when MC curve is rising? Explain it with the help of diagram.

C = a + b x + c x^{2}

\frac{d}{d x} (A C) = \frac{1}{x} (M C - A C)

Join BYJU'S Learning Program