Average total cost
A)increases as output increases.
B)decreases as output increases.
C)increases if marginal cost is increasing.
D)increases if marginal cost is greater than average total cost.
E)both c and d

Question

Quizplus · Accepted Answer

Average total cost increases if marginal cost is greater than average total cost because the additional cost of producing one more unit (marginal cost) is higher than the average, pulling the average up.

Average Total Cost