The average cost can never be equal to the marginal cost

Accounting Dec 08, 2020

The average cost can never be equal to the marginal cost.

True or False. Explain.

Expert Solution

False

The statement 'the average cost can never be equal to the marginal cost' is false. The average cost and marginal cost become equal when the average cost is constant and at its minimum level. When average cost is equal to marginal cost, then the average cost curve and the marginal cost curve intersect each other.

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