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When marginal cost is below average total cost, average total cost tends to fall, as each additional unit produced is less expensive than the average of previous units. Conversely, when marginal cost is above average total cost, average total cost rises, since producing additional units adds more cost than the average. Thus, if marginal cost is falling while it is below average total cost, it could lead to a further decrease in average total cost, while rising marginal cost above average total cost would increase it.

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2mo ago

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6 If the average total cost curve is falling what is necessarily true of the marginal cost curve If the average total cost curve is rising what is necessarily true of the marginal cost curve?

When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve.


Where will you apply marginal costing?

Marginal costing is the ascertainment of cost of one extra unit to be prepared or manufactured. Basically thee formula is- (Marginal Cost)n = (Total Cost)n - (Total Cost)n-1 for nth item . Through marginal costing we can ascertain whether our cost of production is rising, falling or constant and thus it helps in formation of a strategic plan for the enterprise.


Why does marginal cost fall and then start rising?

Marginal cost generally falls as quantity increases becausepeople learn to do their jobs better as they produce more


When marginal costs are below average cost at a given output one can deduced that if output increases?

when marginal cost are below average cost at a given output, one can deduce that,


When marginal costs are below average cost at a given output one can deduce that if output increases?

when marginal cost are below average cost at a given output, one can deduce that,


When marginal cost is less than the average total cost the average total cost is falling why?

as a marginal cost is the cost of the next product produced, if this is less than average cost, when you continue to produce more products the lower marginal cost will have an affect on the average and cause it to fall.


Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?

when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost


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


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.


When a firm's marginal revenues are higher than its marginal cost?

Marginal cost is


If you have total cost and total benefit how do you get marginal cost and marginal benefit?

Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity


How do you find marginal average cost?

Marginal cost comes from the costs of producing just one more of something.