The average total cost curve is increasing when marginal cost is:
A)increasing
B)decreasing
C)less than average total cost
D)greater than average total cost

Name: The average total cost curve is increasing when marginal cost is: A)increasing B)decreasing C)less than average total cost D)greater than average total cost
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Question

Quizplus · Accepted Answer

When marginal cost is greater than average total cost, it pulls the average total cost curve upwards, resulting in an increasing average total cost curve.

The Average Total Cost Curve Is Increasing When Marginal Cost