When marginal cost exceeds average total cost:

a. average fixed cost must be rising
b. average total cost must be rising
c. average total cost must be falling
d. marginal cost must be falling

B) average total cost must be rising

Explanation:

Marginal cost is the rate at which total variable cost increases when one more unit is produces.

So when marginal cost is larger than average cost, it means that total average costs must be increasing.

For example, we have the following production costs:

If the marginal cost of producing 1 more unit is $6, then the total costs will be $106 and the total average cost will be $5.05 per unit (= $106 / 21 units).

answer; im thinking the correct answer is (7years);

answer; i believe the correct answer is (tall); ///good luck