When marginal cost is between average variable cost and average total cost, marginal cost is increasing.

Question

Quizplus · Accepted Answer

When marginal cost is between average variable cost and average total cost, it means that the additional cost of producing one more unit is greater than the average cost of producing all units so far, but less than the average cost of producing all units including the additional unit. This indicates that the average cost is increasing, which means that marginal cost is also increasing.

When Marginal Cost Is Between Average Variable Cost and Average