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โˆ™ 2013-10-14 07:15:11
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Q: Does marginal cost always intersect average cost at minimum average cost?
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Marginal revenue curve?

Explain why the marginal revenue(MR) is always less than the average revenue (AR)?


Why the marginal cost curve always cut the average cost curve at its lowest point?

This is because if a marginal figure is less than an average figure, the new average figure will decrease.


The marginal cost mc curve always intersects the atc curve at its minimum point?

When marginal cost is below average total cost, the cost of an additional unit is lower than the average cost of all the units, so it causes average total cost to fall. If marginal cost is greater, the cost of an additional unit is higher, so average total cost will rise. So when they are equal, it will stay the same. Think of it like your GPA. Say ATC=your GPA (the average of all your grades), and MC=the grade in your next course (one particular grade). If you have a B average and get a C in your next course, your GPA will fall (like when MC is lower than ATC). If you have a B average and get an A, your GPA will rise (like when MC is higher than ATC). If you get a B in your next course, there won't be any change because it's the same as the average (like when ATC=MC).


Can the average costs rise while the marginal costs are declining?

MC is the change in Tc divide by change in quantity. MC will always be negatively sloped and ATC has positively sloped.


Relationship between Marginal revenue and Demand curve?

marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.

Related questions

Does marginal cost curve always intersect the average cost curve at the average cost curve's lowest point?

When the marginal cost is below the average total costs or the average variable costs,then the AC would be declining.When marginal cost is above the average cost then the average cost would be increasing.Therefore the marginal cost should intersect with the average cost at the lowest point in order to pull the average cost upwards.


What is a marginal product?

marginal product is always decreasing the average is always above!.


Marginal product is always decreasing the average product is always above the marginal product?

If average product is decreasing then?


Relationship between total product marginal product and average product?

Just remember that marginal always leads average. Whatever the marginal product does the average will always do the same soon after.


Marginal revenue curve?

Explain why the marginal revenue(MR) is always less than the average revenue (AR)?


Why the marginal cost curve always cut the average cost curve at its lowest point?

This is because if a marginal figure is less than an average figure, the new average figure will decrease.


Do two lines always intersect at one point?

If two different lines intersect, they will always intersect at one point.


Why law of diminishing returns and return to scale might use in understanding the output decisions of firms in different industries?

show with example that if the marginal product is always decreasing the average product is always above the marginal product?


Do perpendicular lines always sometimes or never intersect?

Perpendicular lines always intersect and make 90 degree angles. Parallel lines never intersect with each other.


Will the perpendicular bisectors of a right triangle always intersect?

yes, because perpendicular lines always intersect. all lines intersect unless they are parallel or on separate planes (skew)


Do Two planes always intersect in a line?

Some planes are parallel and don't intersect at all. Those that do intersect (and that are not coincident, i.e. the same plane) intersect in a line.


Do intersecting lines always intersect at right angles?

No. Lines can intersect at any possible angle.

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