When a firm's marginal cost is rising, we know that: A) average fixed cost must be rising. B)...
Question:
When a firm's marginal cost is rising, we know that:
A) average fixed cost must be rising.
B) average variable cost must be rising.
C) average total cost must be rising.
D) marginal product must be zero.
E) marginal product must be falling.
Marginal Cost:
Marginal cost is the cost required to produce one more unit of a good or service or to carry out an additional level of activity. The marginal cost curve takes a U-shape, meaning that it first decreases as the firm increases its output. Then, as it reaches a point, it starts to increase as more and more output is produced.
Answer and Explanation: 1
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When a firm's marginal cost is rising, we know that: B) average variable cost must be rising and C) average total cost must be rising.
When the...
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Marginal Cost: Definition, Equation & Formula
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Chapter 3 / Lesson 12
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What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.
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