If the additional cost of producing one more of a good is more than the average cost of producing one more good, then marginal cost is:

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When the additional cost (marginal cost) of producing one more unit of a good is higher than the average cost of producing goods, it indicates that the marginal cost is increasing. This is because the marginal cost curve typically intersects the average total cost curve at its lowest point, and when marginal cost is above average total cost, it is on the rise.

If the Additional Cost of Producing One More of a Good