Which of the following is TRUE?
A) The MC curve intersects AFC at its minimum point.
B) If MC is below AVC, AVC must be increasing.
C) If MC is above ATC, ATC must be increasing.
D) none of the above

Question

Quizplus · Accepted Answer

The average total cost (ATC) increases when the marginal cost (MC) is above it because the MC pulls the average upwards, indicating that the cost of producing an additional unit is higher than the average cost of production up to that point.

Which of the Following Is TRUE