CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

If marginal cost is greater than average total cost, then ______
A. average total cost is falling.
B. average total cost will not change.
C. average total cost is rising.
Explanation: If marginal cost exceeds average total cost, then average total cost must be increasing, since the cost of the last unit exceeds the average cost of all previous units.

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