If marginal cost is above average total cost, average total cost must be falling, whether marginal cost is rising or falling.

Name: If marginal cost is above average total cost, average total cost must be falling, whether marginal cost is rising or falling.
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Quizplus · Accepted Answer

If marginal cost is above average total cost, then average total cost must be rising. This is because marginal cost intersects average total cost at its lowest point, so if it is above average total cost, then average total cost must be increasing.

If Marginal Cost Is Above Average Total Cost, Average Total