Asked by
mohsin hamed
on Nov 04, 2024
Verified
If marginal cost is above average variable cost, then
A) average variable cost is increasing.
B) marginal cost must be decreasing.
C) average variable cost is constant.
D) average variable cost is decreasing.
Average Variable Cost
The variable cost (costs that change with production volume) divided by the quantity of output produced.
Marginal Cost
The increase or decrease in the total cost incurred by producing one additional unit of a product or service.
- Explore the outcomes of production changes on total costs, marginal costs, and average costs.
Verified Answer
KF
Learning Objectives
- Explore the outcomes of production changes on total costs, marginal costs, and average costs.