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 provided.

Question

Quizplus · Accepted Answer

The statement "average cost is positive" does not provide enough information to determine the relationship between marginal cost and average cost. The relationship between marginal and average costs depends on the specific cost structure and production levels of a firm, not just on the positivity of the average cost.

If Average Cost Is Positive