In the context of cost, the relationship between Average Cost (AC) and Marginal Cost (MC) is:
A. When MC < AC, AC is rising
B. MC is always greater than AC
C. When MC = AC, AC is minimum
D. When MC > AC, AC is falling
Answer: Option C
Solution (By JKSSB Mock Tests)
When Marginal Cost equals Average Cost, Average Cost is at its minimum. If MC is below AC, AC falls; if MC is above AC, AC rises.
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