Which of the following statements is TRUE?

Question

A. Whenever marginal cost (MC) curve is above the average total cost (ATC) curve, MC is decreasing

B. Whenever marginal cost (MC) curve is below the average total cost (ATC) curve, MC is decreasing

C. Whenever marginal cost (MC) curve is above the average total cost (ATC) curve, MC is increasing

D. Whenever marginal cost (MC) equal average total cost (ATC) curve, MC is minimised.

Answer 1

C. Whenever marginal cost (MC) curve is above the average total cost (ATC) curve, MC is increasing.

(it's true for "standardized" cost curves and if you go toward increase in output).