Different Cost Curves - SS2 Economics Past Questions and Answers - page 1

When AVC is increasing, ATC is also increasing, but at an increasing rate. This is because the variable cost per unit is increasing, which raises the average total cost.

The MC curve intersects the ATC curve at its lowest point. When MC is greater than ATC, ATC is increasing. This is because the marginal cost of producing an additional unit is greater than the average total cost, which means that adding another unit increases the average cost.