If marginal cost is less than average variable cost,

A) average variable cost is falling.
B) average variable cost is constant.
C) average variable cost is rising.
D) there is no way to determine if average variable cost is falling,constant,or rising.

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total number of units produced.

Marginal Cost

The increase or decrease in total production cost when producing one additional unit of a good.

Average Cost

The total cost of production divided by the quantity of output produced, also known as the cost per unit.