--%>
Assignment Help - homework help

Average Variable Cost-Average Total Cost-Marginal Cost

Describe the relationship among Average Variable Cost (AVC) Average, Total Cost (ATC) and marginal Cost (MC)?

Answer:

A) If MC < AVC and ATC, AVC and ATC are falling
B) MC cuts ATC and AVC at their minimum point
C) If MC > AVC and ATC, AVC and ATC are rising.

   Related Questions in Microeconomics

  • Q : Example of perfectly price inelastic A

    A candy factory now produced 5.2 million packages of gummy worms as well as sold them for $1.27 each this annum. Last year this sold 4.7 million packages of gummy worms sold for $1.36 each. That firm’s gummy worms have demand which is: (1) perfe

    		•
  • Q : Problem based on GDP Assume nominal GDP

    Assume nominal GDP in the year of 2002 was $100 billion and in the year of 2003 it was $260 billion. The general price index in 2002 was 100 and in 2003 it was 180. Between 2002 and 2003 the real GDP rose by: A) 160 percent. B) 44 percent. C) 37 percent. D) 1

    		•
  • Q : Long-run equilibrium output of

    This monopolistic competitor produces Q0 units and is demonstrated: (w) earning total profit equal to 0PbQ. (x) as a price taker. (y) setting price equal to marginal revenue. (z) in long-run equilibrium.

  • Q : Constant shortages of a good problem

    Constant shortages of a good are nearly always attributable to: (1) legal ceiling prices which are set beneath equilibrium. (2) Recessions which yield maximum unemployment rates. (3) Price gouging by firms through monopoly power. (4) Legal price floor

    		•
  • Q : Buyer beware-Laws and Regulations I

    I have a problem in economics on Buyer beware-Laws and Regulations. Please help me in the following question. Caveat emptor signifies: (i) Let the sellers beware. (ii) Sellers are the most excellent judges of the quality of their goods. (iii) Charge w

    		•
  • Q : Large numbers of potential sellers in

    Features of pure competition do not comprise: (w) homogeneous products.(x large numbers of potential buyers. (y) important barriers to entry. (z) large numbers of potential sellers. Can anybody suggest me the prope

    		•
  • Q : Caveat emptor-Laws and Regulations The

    The Caveat emptor is a prehistoric legal doctrine mainly based on the idea that buyer: (1) Are the finest judges of the value that they will receive when they purchase. (2) Must receive money back guarantees when products are flawed. (3) Need governme

    		•
  • Q : Price and output combination by demand

    Not like a purely competitive firm, here a profit-maximizing monopolist can: (w) charge any price it finds advantageous and be assured of selling all this produces. (x) select a price and output combination by a downward-sloping demand curve. (y) spen

    		•
  • Q : Economic profits with average total

    A monopolist can produce economic profits while: (w) average fixed costs [AFC] are very high. (x) average total costs [ATC] lies above the demand curve. (y) at least some portion of the average total costs [ATC] curve lies below the d

    		•
  • Q : Negatively-sloped-Law of Demand The

    The Demand curves are negatively-sloped mainly as people: (1) Encounter advertising which molds the product images. (2) Have less purchasing power if prices fall for the things they sell. (3) Use goods which rise in price less, and expand the utilizat

    		•