Producing an additional unit whose marginal cost exceeds the average total cost incurred thus far has the effect of pulling the

Name: Producing an additional unit whose marginal cost exceeds the average total cost incurred thus far has the effect of pulling the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the marginal cost exceeds the average total cost, it means that the cost of producing an additional unit is higher than the average cost of producing all the units thus far. This will increase the average cost, thereby pulling it up.

Producing an Additional Unit Whose Marginal Cost Exceeds the Average