Which of the following relationships is NOT valid?
A) Rising marginal cost implies that average total cost is also rising.
B) When marginal cost is below average total cost, the latter is falling.
C) When marginal cost is above average variable cost, AVC is rising.
D) none of the above

Question

Quizplus · Accepted Answer

Rising marginal cost does not necessarily imply that average total cost is rising. Average total cost will only rise if marginal cost is above the average total cost.

Which of the Following Relationships Is NOT Valid