If marginal cost is greater than average variable cost, average variable cost will:
A) increase as output increases.
B) decrease as output increases.
C) not change as output increases.
D) equal average total cost.

Question

Quizplus · Accepted Answer

When marginal cost is greater than average variable cost, it pulls the average variable cost up, causing it to increase as output increases.

If Marginal Cost Is Greater Than Average Variable Cost, Average