Question 1
Marginal cost is equal to average variable cost when average variable cost is
◦ zero.
◦ at its minimum.
◦ at its maximum.
◦ equal to total variable cost.
Question 2
If the marginal cost curve is above the average variable cost curve, then
◦ average variable cost is increasing.
◦ average variable cost is decreasing.
◦ average variable cost is constant.
◦ marginal cost is decreasing.