Which of the following is true about relationship between marginal cost function and the average cost function?Answer and Explanation: The answer is (b) If MC is greater than ATC and AVC, then ATC and AVC will increase. When the marginal cost (MC) curve is above the average total cost (ATC) curve and average variable cost (AVC) curve, then increasing the production by a unit increases both the ATC and AVC.
Which of the following statements about the relationship between marginal cost and average cost?The correct option is d) When MC exceeds AVC, AVC must be rising.
What is the relationship between the marginal cost function and average cost function?When the average cost increases, the marginal cost is greater than the average cost. When the average cost stays the same (is at a minimum or maximum), the marginal cost equals the average cost.
Which of the following is true of the relationship between marginal cost and marginal product?Which of the following is true of the relationship between marginal cost and marginal product? When marginal product increases, marginal cost falls.
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