In a short-run production process, the marginal cost is rising and the average total cost is falling as output is increased. Thus, marginal cost is:

A) below average total cost.
B) above average total cost.
C) between the average variable and average total cost curves.
D) below average fixed cost.

Marginal Cost

Marginal Cost is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.

Average Total Cost

The per-unit cost of production that includes all variable and fixed costs, calculated by dividing total costs by the number of units produced.

Production Process

The sequence of operations or activities involved in the conversion of raw materials into finished goods or services.