When does a firm's average variable cost exceed the average total cost?
A) never
B) when the average variable cost is at its minimum
C) when the average fixed cost is at its minimum
D) when the average total cost equals the average fixed cost

Question

Quizplus · Accepted Answer

Average variable cost can never exceed average total cost because average total cost includes average variable cost plus average fixed cost.

When Does a Firm's Average Variable Cost Exceed the Average