In the previous question,if marginal cost for the 101st unit is $0.70,average variable cost must be
A) rising.
B) falling.
C) remaining the same.
D) equal to average total cost.
E) undeterminable from the information given.

Question

Quizplus · Accepted Answer

If the marginal cost for the 101st unit is $0.70, and it is greater than the average variable cost (since it is producing more output than the average), then the average variable cost must be rising. Therefore, the best choice is A.

In the Previous Question,if Marginal Cost for the 101st Unit