If the marginal cost is increasing over a given output range, the average total cost must increase.

Name: If the marginal cost is increasing over a given output range, the average total cost must increase.
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Quizplus · Accepted Answer

Marginal cost increasing implies the cost of producing an additional unit is rising, but average total cost could still decrease if the marginal cost is below the average total cost, pulling the average down.

If the Marginal Cost Is Increasing Over a Given Output