If marginal cost is increasing, then average total cost must be increasing simultaneously.

Name: If marginal cost is increasing, then average total cost must be increasing simultaneously.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Marginal cost can be increasing while average total cost is decreasing, increasing, or remaining constant, depending on the relationship between the marginal cost and the current average total cost. If marginal cost is below average total cost, average total cost can decrease even if marginal cost is rising.

If Marginal Cost Is Increasing, Then Average Total Cost Must