When marginal cost exceeds average total cost, which of the following must be true? Question 14 options: Marginal cost must be falling. Average total cost must be falling. Average total cost must be rising. Average fixed cost must be rising.

When marginal cost exceeds average total cost, which of the following must be true? Question 14 options: Marginal cost must be falling. Average total cost must be falling. Average total cost must be rising. Average fixed cost must be rising.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When marginal cost exceeds average total cost, which of the following must be true?

Question 14 options:

	Marginal cost must be falling.
	Average total cost must be falling.
	Average total cost must be rising.
	Average fixed cost must be rising.

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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