If marginal cost exceeds average variable cost, then ________ cost is ________ as output increases.
A) average total; at a maximum
B) average total; falling
C) average variable; rising
D) average fixed; at a maximum

Question

Quizplus · Accepted Answer

When marginal cost exceeds average variable cost, it indicates that the cost of producing an additional unit is higher than the average variable cost, causing the average variable cost to rise as output increases.

If Marginal Cost Exceeds Average Variable Cost, Then ________ Cost