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Homework answers / question archive / What change will take place in the average cost if the marginal cost is rising?
What change will take place in the average cost if the marginal cost is rising?
Average cost is the cost per unit of output produced.
Marginal cost is the change in total cost due to increase in production by one more units.
If the marginal cost is rising, then the average cost will also rise with the increase in output because of law of diminishing returns.