What are the relationships between the marginal cost curve and the average cost curves? Explain in words
What will be an ideal response?
When the marginal cost curve is below each of the average variable cost and average total cost curves, the latter fall. The marginal cost curve intersects the two average cost curves at the minimum points of those average cost curves. When the marginal cost curve is above the average cost curves, the latter rise.
You might also like to view...
If insured drivers decide to drive more recklessly than uninsured drivers do, then an adverse selection has occurred
Indicate whether the statement is true or false
Minimum-wage laws are most likely to affect the wages paid to
a. teenagers. b. people with advanced technical training. c. people who are self-employed. d. union members.
Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices.
a. true b. false
Historical actions indicate that the Fed's primary goal of monetary policy over the past 30 years has been to
A) maintain high interest rates. B) keep employment rates low. C) limit the availability of consumer credit. D) prevent high rates of inflation.