If marginal cost is rising, average variable cost must be rising.

Name: If marginal cost is rising, average variable cost must be rising.
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Quizplus · Accepted Answer

Marginal cost can rise while average variable cost is falling, as long as the marginal cost is below the average variable cost. This is because the average variable cost will continue to decrease until the marginal cost equals the average variable cost, at which point the average variable cost will start to rise if the marginal cost continues to increase.

If Marginal Cost Is Rising, Average Variable Cost Must Be