O marginal costs must be increasing. O marginal costs can be either increasing o

Question

O marginal costs must be increasing. O marginal costs can be either increasing or decreasing. Question 10 2 pts If marginal cost is between average variable cost and average total cost, then O both average variable cost and average total cost are increasing. O both average variable cost and average total cost are decreasing. O average variable cost is increasing and average total cost is decreasing. O average variable cost is decreasing and average total cost is increasing. Question 11 2 pts The formula for AVC is TVC/q. Question 12 2 pts Diminishing marginal returns implies

Explanation / Answer

If the marginal cost curve has passed the average cost curve it will increase further and so will the AVC and ATC. The firm is facing a decreasing return to scale.

The answer is "a".

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