What is the difference between average total cost and marginal cost and are they ever equal to each other?
What will be an ideal response?
Average total cost is total cost divided by output. Marginal cost is the change in total cost divided by the change in output. Marginal cost equals average total cost when the average total cost is at its minimum.
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Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Acme Manufacturing: TC = 100 + 3Q. Generic Industries: TC = 500 + 3Q. Which of the following statements is true?
A. Marginal cost at each firm depends on the level of output. B. Acme and Generic have the same marginal cost. C. Acme has greater economies of scale than does Generic. D. Acme has a lower marginal cost than does Generic.
A corporation seeking to expand and looking for the least risky financing option would choose
A. stocks. B. bonds. C. retained earnings. D. a bank loan.
A market with a single seller is called
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.
If Scotland produces only mead, and England produces only ale, how many pints of ale would buy one pint of mead?
a. no fewer than the opportunity cost of mead in Scotland b. fewer than the opportunity cost of mead in Scotland c. fewer than the opportunity cost of mead in England d. as many pints of mead as you can buy with one pint of ale e. not enough information given