Which of the following must be true if average total cost is rising?
A) Average fixed cost must be rising.
B) Total fixed cost must be rising.
C) Average variable cost must be falling.
D) Marginal cost must be greater than average total cost.

Question

Quizplus · Accepted Answer

When average total cost is rising, it means that the cost of producing one more unit (marginal cost) is higher than the cost of producing the previous units on average. This is because the average total cost curve slopes upwards when the marginal cost is above it.

Which of the Following Must Be True If Average Total