As quantity increases,which of the following must be true if average total costs are rising?
A) Marginal cost must be greater than average total cost.
B) Marginal cost must be less than average total cost.
C) Average fixed cost must be increasing.
D) Average fixed cost must be less than average variable cost.

Question

Quizplus · Accepted Answer

If average total costs are rising, it means that the additional cost of producing one more unit is increasing. Therefore, marginal cost must be greater than average total cost.

As Quantity Increases,which of the Following Must Be True If