Describe the relationship between average variable cost and marginal cost


If marginal cost (MC) is greater than average variable cost (AVC), then AVC will increase. If MC is less than AVC, then AVC will decrease. If MC equals AVC, then AVC is unchanged. The minimum of AVC curve will intersect with the MC curve.

Economics

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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:

A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.

Economics

In the figure above, what is the slope of the curve at point A?

A) 0.75 B) -0.75 C) 1.33 D) -1.33 E) zero

Economics

An autonomous appreciation of the U.S. dollar makes American goods ________ expensive relative to foreign goods which ________ net exports in the U.S

A) less; decreases B) less; increases C) more; decreases D) more; increases

Economics

Market interest rates are determined solely by people's willingness to loan funds, that is, their rate of time preference

Indicate whether the statement is true or false

Economics