Assertion (A): When AVC is constant, MC equals AVC.
Reason (R): An average stays the same only if each new unit costs exactly the average.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and R explains A.

Concept: Constant AVC and MC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsAverage and marginal cost

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Ten questions from Cost Curves, at your own pace.

Assertion (A): When AVC is constant, MC equals AVC.Reason (R): An average stays the same only if each new unit costs exactly the average.

Explanation

Assertion (A): When AVC is constant, MC equals AVC.
Reason (R): An average stays the same only if each new unit costs exactly the average.