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Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost1 Mark
Question
Giving reasons, state whether the following Its are true or false.
Average variable cost can fall even when marginal cost is rising.
✓

Answer

True:
Explanation:
It is so because MC is confined to single unit i.e., why it falls rapidly and rise rapidly. As average cost is shared by all the units of the commodity, i.e., why it falls gradually and rise gradually.

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