Introduction to Economics 1 Deneme Sınavı Sorusu #1144509
What is the relationship between MC and ATC?
|
As quantity decreases, ATC will also decrease and MC will increase. |
|
As output increases, AFCkeeps decreasing. |
|
AVC continues to fall as long as MC remains below it. |
|
As quantity increases, AVC and AFC will decrease and MC will increase. |
|
MC curve eventually starts to increase because of diminishing returns and goes through the minimum of the AVC curve pulling it up. |
When AVC and AFC decrease, AC too decreases. Though the AFC curve continues to decrease, once the AVC curve slopes upward, it will eventually outweigh the slope of the AFC curve and make the AC curve upward sloping and hence U shaped. The relationship between the MC curve and all three average cost curves and the connection among the average cost curves.
Yorumlar
- 0 Yorum