When the average total cost curve is rising,the marginal cost curve will be

Question

Quizplus · Accepted Answer

When the average total cost curve is rising, it means that the cost of each additional unit of output is increasing, which is represented by the marginal cost curve. Therefore, the marginal cost curve will be above the average total cost curve. Choice A is incorrect because the marginal cost curve takes into account both variable and fixed costs, while the average fixed cost curve only represents fixed costs. Choice B is incorrect because the question implies that the average total cost curve is already rising, so there is no indication that the marginal cost curve will fall with greater output.

When the Average Total Cost Curve Is Rising,the Marginal Cost