If marginal cost is greater than average total cost then
A)profits are increasing
B)economies of scale are becoming greater
C)average total cost remains constant
D)average total cost is increasing
E)average total cost is decreasing

Question

Quizplus · Accepted Answer

If marginal cost is greater than average total cost, it means that the cost of producing one more unit is higher than the average cost of producing all units, implying that the average cost must be increasing. Therefore, the correct answer is D, which states that average total cost is increasing.

If Marginal Cost Is Greater Than Average Total Cost Then