What happens to the average total cost when marginal cost is less than the average total cost?

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The average fixed cost increasesThe average total cost decreasesThe average total cost increasesThe average total cost reaches its lowest pointNone of the above

Explanation

When the marginal cost is lower than the average total cost, it pulls the average total cost down, causing it to decrease. Therefore, average total cost falls as long as marginal cost remains below it.