At 150,000 units of output, a firm's marginal cost is $0.87 and its average total cost is $0.48.We can conclude that at this quantity of output the firm's average total cost curve is:
A) upward-sloping.
B) downward-sloping.
C) vertical.
D) horizontal.

Question

Quizplus · Accepted Answer

At 150,000 units of output, the marginal cost ($0.87) is greater than the average total cost ($0.48), meaning that the average total cost curve must be rising. Therefore, the best choice is A) upward-sloping.

At 150,000 Units of Output, a Firm's Marginal Cost Is