Question:

AC falling, why MC below AC curve?

by  |  earlier

0 LIKES UnLike

when AC are falling, why is MC below AC curve?

could you explain so that it's easy to understand?

 Tags:

   Report

2 ANSWERS


  1. AC is total average cost for production of units

    MC is the addition made to produce one more unit

    in long run the total cost for producing a unit reduces eventually so does the AC curve

    MC also reduces but more than the ac curve


  2. The MC is simply the cost of making one more product.  If the cost of making that one product is below the average, it will pull the average down.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.