At what level of output will average total cost increase
A)when marginal cost equals average total cost
B)when marginal cost is greater than average total cost
C)when marginal cost equals average variable cost
D)when marginal cost is lower than average variable cost

Question

Quizplus · Accepted Answer

When marginal cost is greater than average total cost, it means that each additional unit of output is costing more than the average cost of producing all units up to that point. This causes the average total cost to increase. Therefore, the level of output at which this occurs is the point at which average total cost starts to increase.

At What Level of Output Will Average Total Cost Increase