If average cost is positive,
A) marginal cost equals average cost.
B) marginal cost exceeds average cost.
C) marginal cost is less average cost.
D) Not enough information is given.

Question

Quizplus · Accepted Answer

The statement that average cost is positive does not provide enough information to determine the relationship between marginal cost and average cost. These costs depend on the specific cost structure and production level of a firm.

If Average Cost Is Positive