When AVC is rising,ATCA) must be rising.B) must be falling.C) may be falling or rising.D) will remain constant.

Question

Simply Calah · Accepted Answer

Final Answer : C, Explanation :  When AVC (Average Variable Cost) is rising, ATC (Average Total Cost) may be falling or rising. This is because ATC includes both AVC and AFC (Average Fixed Cost), and the behavior of ATC depends on how AVC and AFC are changing relative to each other. If AFC is decreasing faster than AVC is increasing, ATC could still be falling. Conversely, if AVC increases at a faster rate than AFC decreases, ATC could be rising.

When AVC is rising,ATC

A) must be rising.
B) must be falling.
C) may be falling or rising.
D) will remain constant.

Definitions

Learning Objectives

Learning Objectives

Related questions