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Why average cost increase when marginal cost is increasing?

Marginal cost = derivative of (Total cost/Quantity) Where Total cost = fixed cost + variable cost Marginal cost = derivative (Variable cost/Quantity) (by definition, fixed costs do not vary with quantity produced) Average cost = Total cost/Quantity The rate of change of average cost is equivalent to its derivative. Thus, AC' = derivative(Total cost/Quantity) => derivative (Variable cost/Quantity) = MC. So, when MC is increasing, AC' is increasing. That is, when marginal cost increases, the rate of change of average cost must increase, so average cost is always increasing when marginal cost is increasing.


Is royalty is in debit or credit side?

Royalty expenses are typically recorded on the debit side of an account. When a company incurs royalty expenses, it increases its expenses, which are debited. Conversely, if a company receives royalty income, it would be recorded on the credit side, increasing its revenue.


What Good Method Of Increasing Income That It Covers All Expenses In A Budget?

One effective method of increasing income to cover all expenses in a budget is to pursue a side hustle or freelance work that aligns with your skills and interests, such as tutoring, graphic design, or writing. Additionally, investing in furthering your education or acquiring new certifications can enhance your career prospects, potentially leading to promotions or higher-paying job opportunities. Another option is to explore passive income streams, like rental properties or dividend-yielding investments, which can provide additional financial support without requiring constant effort. Lastly, consider reducing unnecessary expenses to maximize your budget's efficiency alongside income increases.


A tax in which the percentage increases as income increases?

A progressive tax.


Tax rate increases as the tax base increases?

Progressive A+

Related Questions

Which compounding period has the highest effective annual rate?

The effective annual rate (EAR) increases with more frequent compounding periods. Therefore, continuous compounding yields the highest effective annual rate compared to other compounding intervals such as annually, semi-annually, quarterly, or monthly. This is because continuous compounding allows interest to be calculated and added to the principal at every possible moment, maximizing the effect of interest on interest.


Why power decreases when the frequency increases?

When frequency increases, power decreases due to the skin effect and proximity effect. These effects cause current to flow closer to the surface of the conductor at higher frequencies, increasing the effective resistance. This increased resistance leads to power losses in the form of heat, reducing the overall power transmitted.


How does the concentration of reactants affect the rate of a reaction.?

Increasing the concentration increases the molecules' collision frequency.


How does increasing the wavelength by 50 percent affect the frequency of a wave on a rope?

Increasing the wavelength by 50 percent will decrease the frequency of the wave by one-third. This is because frequency and wavelength are inversely proportional - as wavelength increases, frequency decreases, and vice versa.


What effect if any does increasing the speed of the plunger have on the wavelength of the waves?

It will shorten the wavelength.


What increases when the frequency increases?

When frequency increases, the energy of the radiation increases. Additionally, the pitch of sound also increases with frequency. In electrical circuits, the impedance of a capacitor or inductor also increases with frequency.


As the frequency of a wave goes up what happens to the wavelength?

If you are talking about an electromagnetic wave, energy is proportional to frequency (E=hf, h=Planck's constant). So by increasing frequency, the energy it carries is also increased.


TO INCrease the rate of a reaction why would you increase the concentration of the reactants?

For most reactions which involve liquids or gases, increasing the concentration of the reactants also increases the rate of reaction. This is because the number of effective collisions are also increased which speeds up the reaction.


Does the speed of sound independent of frequency?

No, the speed of sound is not independent of frequency. In general, the speed of sound increases with increasing frequency. This relationship is due to the way sound waves travel through a medium, such as air or water.


What happens to the frequency when the wheel speed increases?

When the wheel speed increases, the frequency also increases. This is because frequency is directly proportional to the speed of rotation of the wheel.


As frequency increases the energy of a wave increases or decreases?

As frequency increases the energy of a wave also increases.


Why at low frequency current and power dissipation is high?

we know that frequency and time period are inversely proportional so as frequency decreases time period increases resulting in larger current flow thus increasing the dissipation.