Asked by

Richard Ballesteros
on Nov 04, 2024

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If the average variable cost curve is above the marginal cost curve, then

A) marginal costs must be decreasing.
B) average variable costs must be increasing.
C) marginal costs must be increasing.
D) marginal costs can be either increasing or decreasing.

Average Variable Cost Curve

A graph that displays how the variable cost per unit changes with changes in output level.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as the production level increases.

  • Analyze the effects of output fluctuations on total costs, marginal costs, and average costs.
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aiesha feaginsNov 05, 2024
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