At all levels of production higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost
A)rises.
B)remains unaffected.
C)falls.
D)All of the above are possible depending on the shape of the marginal cost curve.

Question

Quizplus · Accepted Answer

At all levels of production higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost rises. This is because the marginal cost curve becomes steeper beyond this point and adds more to the total cost of production, which increases the average variable cost.

At All Levels of Production Higher Than the Point Where