Rebecca knows that Becca Furniture's marginal cost curve is above the average total cost curve.This means Becca Furniture's average total cost curve:
A)must be rising.
B)must be flat.
C)must be falling.
D)may be rising, falling, or flat depending on other things.

Question

Quizplus · Accepted Answer

If the marginal cost curve is above the average total cost curve, it means that each additional unit produced costs more than the average cost of production. This will cause the average total cost curve to rise. Therefore, choice A is the best answer.

Rebecca Knows That Becca Furniture's Marginal Cost Curve Is Above