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What happens when marginal costs equal average variable costs between what output levels?
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What happens to marginal cost after the point where it equals average variable cost?
Marginal Cost will keep increasing (have upward slope) because of the principle of diminishing marginal returns. The MC curve above the its intersection with AVC is the Supply Curve *because below minimum AVC, the firms stops production)
In the short run if marginal product is at its maximum what happens to average cost?
it is at its minimum
When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
What happens when marginal revenue equals marginal cost?
profit is maximized
If the independent variable increases what happens to the dependent variable?
It depends on the relationship, if any, between the independent and dependent variables.
When the marginal social cost is greater than the marginal social benefit what happens?
inefficient overproduction
Distinguish between an independent variable and a dependent variable?
The independent variable is the value being manipulated or changed, while the dependent variable is the observed result of the independent variable being manipulated. "IF" you change the independent variable, "THEN" what happens to the dependent variable?
Why is a control group important to have in a experiment?
A control group is the standard of comparison between what happens with the experimental variable and without the experimental variable.
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
What happens when marginal cost exceeds average total cost?
MC is the cost of producing one extra good, so if the cost of producing that one extra good is above the average, then the ATC increases.
What is the variable on the y-axis that happens because of another variable?
The dependent variable.
