If average total cost is declining,marginal cost cannot be increasing.

Name: If average total cost is declining,marginal cost cannot be increasing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When average total cost (ATC) is declining, it means that the cost of producing each additional unit is less than the average cost of production up to that point. However, marginal cost (MC) can still be increasing if it is less than the ATC, because as long as the MC is below the ATC, it pulls the average down, but it can be rising towards the ATC.

If Average Total Cost Is Declining,marginal Cost Cannot Be Increasing