Say at the current output level marginal costs = $20 and the average total cost = $10. From this information we know that the

Name: Say at the current output level marginal costs = $20 and the average total cost = $10. From this information we know that the
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When marginal cost is above average total cost, average total costs are increasing. This is because the marginal cost is the cost of producing one more unit, and if it's higher than the average, it pulls the average up.

Say at the Current Output Level Marginal Costs = $20