Homework answers / question archive / Two part question: What happens to marginal cost if a business’s average total cost is decreasing? A

Two part question: What happens to marginal cost if a business’s average total cost is decreasing? A

Economics

Share With

Two part question:
What happens to marginal cost if a business’s average total cost is decreasing?
A. Marginal cost must be lower than average total cost.
B. Marginal cost must be higher than average total cost.
C. Marginal cost must be lower than total cost.
and
how do economists distinguish between the long run and the short run?
A. There are diminishing returns in the short run, but increasing returns in the long run.
B. In the short run, at least one resource is fixed; in the long run, all resources are variable.
C. Resources have higher costs in the short run than in the long run.