Answer:
The correct answer is A. the marginal cost must be greater than average total cost
Explanation:
Average variable costs are found by dividing total fixed variable costs by output.
Average total cost is also called average cost or unit cost. Average total costs are a key cost in the theory of the firm because they indicate how efficiently scarce resources are being used.
Marginal cost is the cost of producing one extra unit of output. It can be found by calculating the change in total cost when output is increased by one unit.
Average total cost and marginal cost are connected because they are derived from the same basic numerical cost data.
From the given options , the correct one is that if average total cost is increasing, the marginal cost must be greater than average total cost
