If marginal cost is ______ average cost,then average cost will _____.
A) Equal to; decrease
B) Less than; increase
C) Greater than; decrease
D) Greater than; increase

Question

Quizplus · Accepted Answer

When marginal cost is greater than average cost, it means the cost of producing an additional unit is higher than the current average, which will pull the average cost up, hence increasing it.

If Marginal Cost Is ______ Average Cost,then Average Cost Will