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Which of the following statements about a firm’s cost structure are correct? (a) Average cost measures the...

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Economics

Which of the following statements about a firm’s cost structureare correct?

(a) Average cost measures the firm’s cost of producing oneadditional unit.

(b) Both average costs and average variable costs are alwaysupward sloping.

(c) If marginal cost is above average cost, then average cost isincreasing

Answer & Explanation Solved by verified expert
4.0 Ratings (467 Votes)
c If marginal cost is above average cost then average cost is increasing It is the Marginal cost which is the cost of producing one additional unit and not Average costTherefore a is    See Answer
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