In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.

Question

Quizplus · Accepted Answer

If marginal cost is higher than average total cost, producing an extra unit of output means the average total cost will increase. This is because the additional cost of producing that unit (represented by the higher marginal cost) will increase the overall cost of production, resulting in a higher average total cost.

In the Short Run,if Marginal Cost Is Higher Than Average