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.
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.
when marginal cost are below average cost at a given output, one can deduce that,
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.
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 candeduce that, if output increases dose average costs fall or marginal costs will fall
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.
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.
Marginal cost generally falls as quantity increases becausepeople learn to do their jobs better as they produce more
when marginal cost are below average cost at a given output, one can deduce that,
when marginal cost are below average cost at a given output, one can deduce that,
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.
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 candeduce that, if output increases dose average costs fall or marginal costs will fall
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.
Marginal cost is
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
Marginal cost comes from the costs of producing just one more of something.