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-I List-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:
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-I | List-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 , average cost falls when , (II), and rises when , i.e. , (IV).
AC is unchanged when , (I).
If total cost C is constant then , (III).
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