Question

If the short-run average variable cost of production for a firm are rising then this indicates that

Answer 1

Answer:

marginal costs are above average variable costs.

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Answer 2

Average and Marginal cost

Explanation:

• Average total and variable costs measure the common costs of manufacturing some quantity of output. incremental cost is somewhat different. price is that the additional cost of manufacturing another unit of output.
• So it's not the price per unit of all units being produced, but only the subsequent one (or next few). differential cost will be calculated by taking the change in total cost and dividing it by the change in quantity.
• The monetary value curve is mostly upward-sloping, because diminishing marginal returns implies that additional units are more costly to provide. a tiny low range of skyrocketing marginal returns is seen within the figure as a dip within the monetary value curve before it starts rising. there's a degree at which marginal and average costs meet, because the following Clear it Up feature discusses.
• The only reason to increase or decrease output is by increasing or decreasing the variable inputs. Therefore, variable costs increase or decrease with output. We treat labor as a variable cost, since producing a greater quantity of a decent or service typically requires more workers or more work hours.

Therefore it indicates that the marginal cost are above average variable cost.