Which of the following statements is correct?
A)If marginal cost is rising, then average total cost is rising.
B)If marginal cost is rising, then average variable cost is rising.
C)If average variable cost is rising, then marginal cost is minimized.
D)If average total cost is rising, then marginal cost is greater than average total cost.

Question

Quizplus · Accepted Answer

When average total cost is rising, it indicates that marginal cost is greater than average total cost, as marginal cost pulls the average up when it is above the average.

Which of the Following Statements Is Correct