When marginal cost is rising,what must happen to average variable cost
A)It must be rising.
B)It must be falling.
C)It must be constant.
D)It could be rising or falling.

Question

Quizplus · Accepted Answer

When marginal cost is rising, average variable cost could be rising or falling depending on whether the marginal cost is above or below the average variable cost. If marginal cost is above average variable cost, it will pull the average up, and if it is below, it will pull the average down.

When Marginal Cost Is Rising,what Must Happen to Average Variable