Respuesta :
Answer:
The correct answer is option A.
Explanation:
The marginal cost is the cost incurred in the production of an additional unit of output. In other words, it is the change in total cost due to a change in output.
The average total cost is the ratio of total cost and the quantity of output. It measures the average cost incurred in the production of each unit of output.
The average total cost curve is U shaped. The marginal cost curve intersects the average total cost curve at its minimum point. So when the marginal cost is greater than the ATC or average total cost is it implies that ATC is rising.
