Question

In the short run, increasing marginal costs always imply increasing average total costs. a. Trueb. False

Answer 1

The answer is A. True.

Step-by-step explanation:

Marginal Cost is the cost of producing one more product unit.

Marginal Cost = Average Total Cost / Average Goods Output

Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.