--%>
Assignment Help - homework help

Average cost-aversge variable cost-Marginal cost

Relation between Average cost, aversge variable cost and Marginal cost:

1214_costs.jpg

A) MC interects to AC and AVC at their minimum level

B) AC and AVC decreases before the interection by MC, but remain greater than MC.

C) AC and AVC starts to increase after the itersection by MC, and becomes less than MC.

D) As output increases, AC and AVC tends to be closer but the difference between AC and AVC can naver be zero.

   Related Questions in Microeconomics

  • Q : Monopsonist in the labor market I have

    I have a problem in economics on Monopsonist in the labor market. Please help me in the following question. The monopsonist in labor market faces the: (1) Market demand for the labor. (2) Household’s demand for the labor. (3) Household’s s

    		•
  • Q : Average productivity of labor When the

    When the capital-to-labor (K/L) ratio rises, the: (1) productivity of capital tends to increase. (2) profitability of capital investments will raise. (3) average wages paid to labor will probably decrease. (4) average productivity of labor generally i

    		•
  • Q : Analytic Time-The Short Run I have a

    I have a problem in economics on Analytic Time-The Short Run. Please help me in the following question. Economists classify a time-period in which at least one resource is fixed as: (i) Short run. (ii) Long run. (iii) Production period. (iv) Profit period.

  • Q : Problem of How to Produce Describe the

    Describe the problem of How to Produce? Answer: This refers to the choice of techniques of production of services and goods and whether labor intensive or capital i

    		•
  • Q : Change in Supply versus change in

    Assume that a screen at the front of this room exhibits a graph of supply curve for ice-cream. The shift of this supply curve away from the center of our Earth would replicate: (i) A raise in the quantity of ice-cream demanded. (ii) A reduction in the supply of ice-cr

    		•
  • Q : What is the sum of market demand for a

    I have a problem in economics on what is the sum of market demand for a good. Please help me in the following question. The other things constant, market demand for the good is a sum of: (i) Firm’s utility-maximizing decisions. (ii) Amounts dema

    		•
  • Q : Most efficient production technique of

    Refer to the given data give the answer of following question. In view of the indicated resource prices, the economically most efficient production technique(s) is (are) technique(s): A) #1. B) #2 and #4. C) #3. D) #1 and #3.

    Q : Monopolist maximizes profit When a

    When a monopolist maximizes the profit in the product market, it will: (i) Hire labor till the marginal revenue product equivalents the marginal resource cost. (ii) Hire the labor till the value of marginal product equivalents the marginal resource cost. (iii) Pay a w

    		•
  • Q : Elastic industry What industry is

    What industry is perfectly elastic that is not agriculture?

    		•
  • Q : Synonym for the economists term utility

    I have a problem in economics on Synonym for the economist’s term utility. Please help me in the following question. The reasonably close by synonym for the economist’s term utility is: (1) Consumption. (2) Marginalism. (3) Discontentment. (4) Satisfaction

    		•