If the average total cost is increasing over a given output range, the average total cost must be smaller than the marginal cost.

Name: If the average total cost is increasing over a given output range, the average total cost must be smaller than the marginal cost.
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Quizplus · Accepted Answer

When the average total cost (ATC) is increasing, it means that the cost of producing each additional unit (marginal cost, MC) is higher than the ATC, thus pulling the ATC upwards.

If the Average Total Cost Is Increasing Over a Given