When marginal cost is above average variable cost, average variable cost must be:
A) at its minimum.
B) at its maximum.
C) greater than average total cost.
D) increasing.

Name: When marginal cost is above average variable cost, average variable cost must be: A) at its minimum. B) at its maximum. C) greater than average total cost. D) increasing.
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Question

Quizplus · Accepted Answer

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

When Marginal Cost Is Above Average Variable Cost, Average Variable