If the average variable cost of producing 10 units is $18 and the average variable cost of producing 11 units is $20,we know that,between 10 and 11 units of output,
A)marginal cost is increasing.
B)average total cost is increasing.
C)average fixed cost is increasing.
D)total cost is either increasing or decreasing.
E)average total cost is minimized.

Question

Quizplus · Accepted Answer

Since the average variable cost increases when output increases from 10 to 11 units, we know that the marginal cost of producing the 11th unit must be greater than $20. Therefore, marginal cost is increasing between 10 and 11 units of output.

If the Average Variable Cost of Producing 10 Units Is