When marginal cost is rising, average total cost is rising.

Name: When marginal cost is rising, average total cost is rising.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Marginal cost rising does not necessarily mean that average total cost is rising. Average total cost will rise only if the marginal cost is above the average total cost. If the marginal cost is below the average total cost, the average total cost can still be decreasing.

When Marginal Cost Is Rising, Average Total Cost Is Rising