In the short run, average total cost is
A) higher than average variable cost.
B) equal to average variable cost.
C) less than average variable cost.
D) sometimes higher and sometimes lower than average variable cost.

Question

Quizplus · Accepted Answer

Average total cost includes both average fixed costs and average variable costs. Since average fixed costs are always positive, average total cost is always higher than average variable cost in the short run.

In the Short Run, Average Total Cost Is