At all levels of production beyond the point where the marginal-cost curve crosses the average variable cost curve,what happens to average variable cost
A)It rises.
B)It rises then falls.
C)It falls.
D)It falls then rises.

Question

Quizplus · Accepted Answer

Beyond the point where the marginal-cost curve crosses the average variable cost curve, the average variable cost starts to rise. This is because at this point, the production requires more variable inputs (like labor and raw materials) which increases the production costs, leading to an increase in average variable cost.

At All Levels of Production Beyond the Point Where the Marginal-Cost