State true or false, giving reasons:
Average Cost (AC) is more consistent than Marginal Cost (MC)
Dear student,
The given statement is true.
AC is more consistent because it is not directly affected by the law of variable proportion. On the other hand, MC is directly affected by law of variable proportion due to which it is narrow 'U' shaped curve whereas, AC curve is wide 'U' shaped curve.
Regards
The given statement is true.
AC is more consistent because it is not directly affected by the law of variable proportion. On the other hand, MC is directly affected by law of variable proportion due to which it is narrow 'U' shaped curve whereas, AC curve is wide 'U' shaped curve.
Regards