If marginal cost is above average total cost, average total cost will
A) be minimized.
B) decrease.
C) increase.
D) remain constant.

Name: If marginal cost is above average total cost, average total cost will A) be minimized. B) decrease. C) increase. D) remain constant.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

When marginal cost is above average total cost, it means the cost of producing an additional unit is higher than the current average cost of production. This will pull the average total cost upwards, causing it to increase.

If Marginal Cost Is Above Average Total Cost, Average Total