If marginal cost is increasing, average variable cost must also be increasing.

Name: If marginal cost is increasing, average variable cost must also be increasing.
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Quizplus · Accepted Answer

Marginal cost can increase while average variable cost is decreasing, increasing, or constant, depending on the specific cost values and quantities produced. Marginal cost reflects the cost of producing one more unit, while average variable cost is the total variable cost divided by the quantity of output.

If Marginal Cost Is Increasing, Average Variable Cost Must Also