Question

5. State the relationship between AC and MC.​

Answer 1

AC and MC both are derived from Total Cost (TC).

AC means TC per unit of output and MC means addition to TC when one or more output is produced.

Answer 2

Step-by-step explanation:

The relationship between the marginal cost and average cost is the same as that between any other marginal-average quantities. When marginal cost is less than average cost, average cost falls and when marginal cost is greater than average cost, average cost rises.