If Marginal Cost (MC)is higher than Average Cost (AC),average cost is
A)falling
B)rising
C)constant
D)none of the above

Name: If Marginal Cost (MC)is higher than Average Cost (AC),average cost is A)falling B)rising C)constant D)none of the above
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Question

​If Marginal Cost (MC)is higher than Average Cost (AC),average cost is
A)​falling
B)rising
C)constant
D)​none of the above

Quizplus · Accepted Answer

If MC is higher than AC, it means that the cost of producing an additional unit is higher than the average cost of producing all units. This indicates that the average cost is increasing, therefore, the best choice is option B, rising.

​If Marginal Cost (MC)is Higher Than Average Cost (AC),average Cost

If Marginal Cost (MC)is Higher Than Average Cost (AC),average Cost