As long as average cost is falling Option 1: Marginal cost > Average cost Option 2: Marginal cost < Average cost Option 3: Marginal cost = Average cost Option 4: Marginal cost = Total cost

The answer is 'Marginal cost < Average cost'. View full solution:

CUET Economics - As long as average cost is falling | PYQs + Solutions

CUET Economics 2025 14 May Shift 1

Micro

Medium

Marginal cost > Average cost

Marginal cost < Average cost

Marginal cost = Average cost

Marginal cost = Total cost

✅ Correct Option: 2

Related questions:

28 May Shift 2

In the short run, some of the factors of production of a firm ......

31 May Shift 1

Select the INCORRECT condition for profit maximisation in the perfect market.

21 May Shift 1

Which of the following is/are true about the short run costs?

(A) Marginal cost is the slope of total variable cost.

(B) Average fixed cost curve is a downward sloping rectangular hyperbola.

(D) Average variable cost curve and average cost curve are parallel to each other.

Choose the correct answer from the options given below: