Question #36518

if the AC of a firm is less than MC of any output, this means that?
a. thats a condition of perfect competition
b. AC decreases when their is increase in general production
c. AC increases with increase in production
d. MC is independent from total production

Expert's answer

The right answer is d. MC is independent from total production, because MC should intersect AC in definite point, so there should be the segment, where AC>MC. So, if they don't intersect, MC is independent from total production.

## Comments

## Leave a comment