If average variable costs increase as output increases,then
A) total fixed cost must be increasing also.
B) marginal cost must be greater than average variable cost.
C) total cost must be constant.
D) output must be zero.
E) average total cost must be increasing also.

Question

Quizplus · Accepted Answer

When average variable costs increase with output, it indicates that marginal cost is above average variable cost, as marginal cost pulls the average up.

If Average Variable Costs Increase as Output Increases,then