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Q: Relationship between marginal cost and average total cost?

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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.

price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co

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

Find (i) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q = 4 and Q = 6.

That is were u now got your total cost

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

Average Product = (Total Product) / (Labor) Marginal Product(2) = (Total Product)(2) - (Total Product)(1)

Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.

Total product is the sum of all marginal products.

Marginal Utility is the derivative of Total Utility

Margianal cost curve crosses the average total cost curve at the lowest point on the average total cost curve to be socially and ecomonical efficient.

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Relationship of total and marginal utility- 1.when total utility increases,marginal also increases. 2.when total utility is at it`s maximum point,marginal becmes zero. 3.when total utility starts declning,marginal becomes negative.

Average Revenue: Total revenue divided by the number of units sold. Marginal Revenue: Is the extra revenue that an additional unit of product will bring. It is the additional income from selling one more unit of a good; sometimes equal to price. It can also be described as the change in total revenue ÷ the change in the number of units sold. Relationship: They both are the revenue brought in by, in this case, units sold. They are both used to calculate the total revenue just that marginal is any exrta revenue that the average revenue has left over.

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 revenue is the change in total revenue with respect to the variable that's changing (usually quantity.)Using calculus,MR = d(TR)/dQ, where Q is quantity.

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.

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