Which of the following must be true if average total costs are rising?
A) Average fixed costs must be rising.
B) Total fixed costs must be rising.
C) Average variable costs must be falling.
D) Marginal costs must be greater than average total costs.

Question

Quizplus · Accepted Answer

When average total costs are rising, it indicates that marginal costs are greater than average total costs, as marginal costs pull the average up when they are higher.

Which of the Following Must Be True If Average Total