Is whenever Ac curve is greater than mc, Ac is decreasing

Answer 1

No, that is not correct. When the average cost (AC) curve is greater than the marginal cost (MC), the average cost is increasing, not decreasing. The AC curve represents the cost per unit of output, while the MC curve represents the additional cost of producing one more unit of output. If the AC curve is above the MC curve, it indicates that the cost of producing each additional unit is greater than the average cost, leading to an increase in the average cost.