<ol>
<li>Which of the following is always true of the relationship between average and
marginal costs?
(a) Average total costs are increasing when marginal costs are increasing.
(b) Marginal costs are increasing when average variable costs are higher than
marginal costs.
(c) Average variable costs are increasing when marginal costs are increasing.
(d) Average variable costs are increasing when marginal costs are higher than
average variable costs.
(e) Average total costs are constant when marginal costs are constant.</li>
</ol>
<p>the answer is (d). can someone explain the answer/ and also explain why its not c?</p>
<p>p.s. does anyone know the curve for the ap micro test for a 5?</p>
<p>For a 5 you need a score between 73 and 90 out of 90. The answer is D and not C because the marginal costs could be increasing but still be below the average variable costs and thus make them DECREASE as opposed to INCREASE. </p>
<p>For instance, if the marginal cost is 5 and the AVC is 10, then an increase of the marginal costs from 5 to 6 will lower the AVC. However, if the marginal cost is 11 and the AVC is 10, then an increase in marginal costs from 11 to 13 will increase the AVC.</p>
<p>Hope that helps!</p>
<p>It’s D because MC intersects AVC at the minimum of AVC, so when AVC is rising, MC must be above AVC.
The curve isn’t as high as motion12345 said. I’m pretty sure no AP test’s curve is above an 80% for a 5. Usually, for micro, it is a 67/90, which translates to about 75%. For macro it’s slightly lower, like 63</p>
<p>Well, the AVC should cross the MC curve at the minimum. So when MC is above AVC, that means that the AVC is increasing (as it decreased until it crosses the MC then increases) so “AVC is increasing when MC is higher than AVC” is valid.</p>
<p>AVC isn’t always increasing when MC is increasing. It would be decreasing until it crosses the MC.</p>
<p>shoot im scared lol i started self-studying this weekend…I barely have an 80% on MC</p>
<p>Think mathematically. If marginal costs are less than average costs, then they will bring the average down, even if they are increasing. If they are more, they will raise the average.</p>