What relationships do a firm's short-run cost curves show?
What will be an ideal response?
The marginal cost (MC), average total cost (ATC) and average variable cost (AVC) curves are all related in the short run:
• When the MC curve lies above (lies below) the AVC curve, the AVC curve rises (falls) with output. This implies that as output increases, the MC curve cuts through the AVC curve at its lowest point.
• When the MC curve lies above (lies below) the ATC curve, the ATC curve rises (falls) with output. This implies that as output increases, the MC curve cuts through the ATC curve at its lowest point.
• As output increases, the ATC curve becomes vertically closer to the AVC curve.
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A) attainable and unattainable points. B) efficient and inefficient points. C) the amount of good Y forgone when more of good X is produced. D) technological progress.
Education achievements ________
A) are a sufficient condition for economic development to occur B) are a guarantee of making a poor country wealthy C) cannot raise human capital D) are both rival and nonrival in character
The wage setting relation is
A) downward sloping. B) upward sloping. C) vertical. D) horizontal.
Is the tax structure of the United States progressive at the Federal level, the state and local level, and combined? How do transfer payments affect the distribution of income?
What will be an ideal response?