-At an output at which MC is greater than ATC
A) the ATC curve is downward sloping.
B) the ATC curve is upward sloping.
C) the AFC curve is upward sloping.
D) the AVC curve is downward sloping.

Question

-At an output at which MC is greater than ATC
A) the ATC curve is downward sloping. 
B) the ATC curve is upward sloping. 
C) the AFC curve is upward sloping. 
D) the AVC curve is downward sloping.

Quizplus · Accepted Answer

When MC (Marginal Cost) is greater than ATC (Average Total Cost), it means that the cost of producing an additional unit is higher than the average cost of production up to that point. This situation leads to an increase in the ATC, indicating that the ATC curve is upward sloping.

-At an Output at Which MC Is Greater Than ATC