Increasing average cost.

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Chapter 7, Problem 11MC

To determine

Increasing average cost.

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If the marginal cost of production is greater than the average cost, in what direction must the average cost be changing if any? A. The average cost must be rising. B. The average cost would equal 0. C. The average cost must be falling. D. The average cost is unaffected. E. The average cost would become non-existent.

When marginal cost exceeds average total cost, a marginal cost must be rising. b average total cost must be falling. c average total cost must be rising. d average fixed cost must be rising.

Which of the following is true of the relationship between Average Cost and Marginal Cost Select one: a. None of the answers given b. Average increases when marginal cost decreases c. Average costs decreases when marginal cost increases d. Average costs increases when marginal cost increases