Which of the following statements is correct A If marginal c

Which of the following statements is correct?

A

If marginal cost is rising, then average total cost is rising.

B

If marginal cost is rising, then average variable cost is rising.

C

If average variable cost is rising, then marginal cost is minimized.

D

If average total cost is rising, then marginal cost is greater than average total cost.

Solution

Answer is D. If average total cost is rising, then marginal cost is greater than average total cost.

Explanation: when the average total cost is rising, this is only because the marginal cost of producing additional unit of production and also the increase in marginal cost is more than increase in average total cost.