If marginal cost is above average variable cost, then:
A) AVC is increasing
B) AVC is decreasing
C) AC is decreasing
D) AVC is constant

Name: If marginal cost is above average variable cost, then: A) AVC is increasing B) AVC is decreasing C) AC is decreasing D) AVC is constant
Brand: Quizplus
Rating: 4.9 (22 reviews)

Question

Quizplus · Accepted Answer

When marginal cost is above average variable cost, it pulls the average variable cost up, indicating that AVC is increasing.

If Marginal Cost Is Above Average Variable Cost, Then