Please Explain how to calculate the total variable cost and it says that it incr
ID: 1099758 • Letter: P
Question
Please Explain how to calculate the total variable cost and it says that it increases with increase in input. What does this mean?
Please explain this question I think it is answer B or D please explain
1.Which of the following must be true when average total costs are declining?
(a) average variable cost (AVC) must be greater than
average total cost (ATC)
(b) marginal cost (MC) must be declining
(c) marginal cost (MC) must be less than
average total cost (ATC)
(d) average variable cost (AVC) must be less than
average total costs (ATC)
Explanation / Answer
(d) average variable cost (AVC) must be less than
average total costs (ATC)