Skip to main contentSkip to solution

Let C = C(x) be the total cost of producing x units of a product and AC is the average cost and MC is the marginal cost, then

Match List-I with List-II

List-IList-II
(A) AC decreases with x(I) when MC = AC
(B) AC increases with x(II) when MC < AC
(C) AC doesn't change with x(III) when MC = 0
(D) C is constant.(IV) when AC < MC

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Since d(AC)dx=MC−ACx\frac{d(AC)}{dx}=\frac{MC-AC}{x}, average cost falls when MC<ACMC<AC, (II), and rises when MC>ACMC>AC, i.e. AC<MCAC<MC, (IV).

AC is unchanged when MC=ACMC=AC, (I).

If total cost C is constant then MC=dCdx=0MC=\frac{dC}{dx}=0, (III).

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question