3.32 Show that when average cost is declining, marginal cost must be less than average cost;...

 

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3.32 Show that when average cost is declining, marginal cost must be less than average cost; when average cost is constant, marginal cost must equal average cost; and when average cost is increasing, marginal cost must be greater than average cost. 3.32 Show that when average cost is declining, marginal cost must be less than average cost; when average cost is constant, marginal cost must equal average cost; and when average cost is increasing, marginal cost must be greater than average cost.

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To demonstrate the relationship between marginal cost MC and average cost AC when AC is declini... View the full answer