If marginal cost is greater than average total cost, then?

Question

a. average total cost is increasing

b. average total cost is decreasing

c. average total cost is unchanged

d. marginal cost is decreasing

Please help with this Q. is for an economics homework. but I'm strugling with this one

Thanks

Answer 1

a. average total cost is increasing

MC is the cost of producing one extra good, so if the cost of producing that one extra good is above the average, then the average cost increases.

Answer 2

a. average total cost is increasing

Though depends on direction - this usually true if you are increasing output.

http://cmacfm.mazoo.net/archives/MCATC.j...