AFC curve
What does AFC curve appear like? Why does it appear so?
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AFC curve is downward sloping to the right. Since the output rises, the fixed cost gets distributed, that is, AFC downs or falls.
Describe the relation between average revenue and marginal revenue. whenever a firm can sell an extra unit or a good by lowering price.
In a perfectly competitive market, market demand curve is provided by Qd = 200 − 5Pd, and the market supply curve is provided by Qd = 35Ps. a) Determine the equilibrium market price
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Product market: It comprises of final services and goods.
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