If the marginal cost is greater than the average cost, then the average cost must be rising.

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If the marginal cost is greater than the average cost, then the average cost must be rising.
Key Takeaway: Remember that variable costs change with output and marginal cost refers to the cost of producing one more unit. If the cost of producing more than one unit is greater than the already established average cost of production, the average cost must rise along with the marginal cost.

If the Marginal Cost Is Greater Than the Average Cost