If marginal cost exceeds average variable cost,then _____
A)average variable cost is negative.
B)average variable cost is increasing.
C)marginal cost is greater than average total cost.
D)average variable cost is decreasing.
E)average fixed cost is increasing.

Question

Quizplus · Accepted Answer

If marginal cost exceeds average variable cost, it means that each additional unit produced is adding more to the total cost than the existing units on average. This would cause the average variable cost to increase.

If Marginal Cost Exceeds Average Variable Cost,then _____