If the ATC curve has a positive slope, then the MC curve must be
A) horizontal.
B) vertical.
C) above the ATC curve.
D) below the ATC curve.

Name: If the ATC curve has a positive slope, then the MC curve must be A) horizontal. B) vertical. C) above the ATC curve. D) below the ATC curve.
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Question

Quizplus · Accepted Answer

When the ATC curve has a positive slope, it means that average total costs are increasing. For this to happen, the marginal cost (MC) must be above the ATC curve, as MC influences the direction of the ATC curve.

If the ATC Curve Has a Positive Slope, Then the MC