When average costs are increasing, marginal costs are greater than average costs.

Name: When average costs are increasing, marginal costs are greater than average costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When average costs increase, it means that the cost of producing each additional unit is higher than before. This implies that the marginal cost of each additional unit is higher than the average cost of all the units produced so far. Therefore, when average costs are increasing, marginal costs are greater than average costs.

When Average Costs Are Increasing, Marginal Costs Are Greater Than