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.

View Complete Question

Related Questions in Microeconomics

Q : Economies of Scale problem Can someone

Can someone please help me in finding out the accurate answer from the following question. When average production costs reduce as the total production of a firm rises, the firm is experiencing: (i) Economies of the scale. (ii) Economies of scope. (iii) Diseconomies o

Q : Maximum profit by equilibrium When a

When a monopolist reaches equilibrium: (1) its profits are at a maximum. (2) price equals marginal cost. (3) average cost is at its minimum. (4) marginal cost is at a minimum. Can someone explain/help me with best solution about pr

Q : Short-run supply curve of a purely

Short-run supply curve of a purely competitive firm is the positively sloped segment of: (a) its long run sales revenue curve. (b) its marginal fixed cost curve. (c) its average profits curve. (d) its average total cost curve. (e) its MC curve above t

Q : Short run supply of an industry The

The cranberry industry’s short-run supply is demonstrated as: (i) curve A. (ii) curve B. (iii) curve E. (iv) curve F. (v) curve G.

Q : Purpose of HMOs and PPOs Give the

Give the answer of following question. The main purpose of HMOs and PPOs is to: A) reduce health care costs for employers and their employees. B) reduce medical malpractice suits. C) enable groups of physicians to increase their fees. D) direct patients to specialists

Q : Demand for labor by monopolist Can

Can someone please help me in finding out the accurate answer from the following question. The demand for the labor by a monopolist in product market is its: (i) Value of the marginal product (or VMP) curve. (ii) Marginal revenue of product (or MRP) curve. (iii) Its m

Q : Discounted present value of future net

A fundamental principle of finance is that the value of any of investment is: (w) the discounted present value of all future net cash flows expected by the investment. (x) negatively related to the future net cash flows generated from the investment. (y) the sum of al

Q : Severe Poverty of Demography From the

From the 1950 year, severe poverty has declined most sharply in between people while they experience: (w) low levels of education. (x) discrimination in employment. (y) old age. (z) poor health. Can someone explain

Q : Statement of Craft unions I have a

I have a problem in economics on Definition of Craft unions. Please help me in the following question. The Craft unions systematize all the workers: (i) In a specific firm or industry, in spite of skill or craft. (ii) In a specific craft, even when th

Q : Characterized purely-competitive markets

Purely-competitive markets are NOT characterized through: (i) substantial barriers to entry and exit. (ii) many small potential buyers. (iii) many small potential sellers. (iv) homogeneous products. (v) zero long-run economic profits.

Discover Q & A

Leading Solution Library

Avail More Than 1422793 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1928681
Asked

3,689

Active Tutors

1422793

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment