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Marginal cost is equal to?
MC = f'(x) = df/dx Marginal cost is equivalent to the derivative of the cost function.
What are the benefits of Marginal cost?
At first, marginal cost decreases due to specialization of workers. Then, MC begins to increase steadily. The only benefits of MC are in the period of specialization.
At what point does the marginal cost (MC) curve intersect the average variable cost (AVC) curve?
The marginal cost (MC) curve intersects the average variable cost (AVC) curve at the minimum point of the AVC curve.
Why is marginal cost curve horizontal?
because mc=mb
Why avc curve U shape?
Overall because of diminishing marginal returns. The marginal cost curve, MC, decreases until diminishing marginal returns set in and and it begins to increase. When the MC is below the AVC, the AVC must fall. When the MC is above the AVC, the AVC must rise. In otherwords, if the marginal cost is decreasing the average cost must be decreasing as well and vice versa.
Marginal cost is equal to?
MC = f'(x) = df/dx Marginal cost is equivalent to the derivative of the cost function.
What are the benefits of Marginal cost?
At first, marginal cost decreases due to specialization of workers. Then, MC begins to increase steadily. The only benefits of MC are in the period of specialization.
At what point does the marginal cost (MC) curve intersect the average variable cost (AVC) curve?
The marginal cost (MC) curve intersects the average variable cost (AVC) curve at the minimum point of the AVC curve.
Why is marginal cost curve horizontal?
because mc=mb
What is the relationship between marginal physical product MPP and marginal cost MC Provide an examples?
what is the relationship between marginal physical product and marginal cos
Why avc curve U shape?
Overall because of diminishing marginal returns. The marginal cost curve, MC, decreases until diminishing marginal returns set in and and it begins to increase. When the MC is below the AVC, the AVC must fall. When the MC is above the AVC, the AVC must rise. In otherwords, if the marginal cost is decreasing the average cost must be decreasing as well and vice versa.
How is the marginal cost (MC) calculated in economics?
In economics, the marginal cost (MC) is calculated by finding the change in total cost when producing one additional unit of a good or service. This is done by dividing the change in total cost by the change in quantity produced.
What is the relationship between Average variable cost Average fixed cost and marginal cost?
we can subtract the AVC and we will get the MC
Why does Net benefits increase when marginal benefits exceed marginal cost?
When Marginal benefit (MB) exceed Marginal cost (MC). The society values the additional unit of product more than the cost of producing it. In this case, Net benefit will increase as long as firms produces more until the point where MB = MC. (Because every additional output will add more to MB than to MC, Net benefit will rise)
If marginal revenue is greater than marginal cost the firm should?
If MR is greater than MC, the firm should increase their production. The ideal amount of production is determined by allowing the marginal cost to equal the marginal revenue.
When the average total cost is at its minimum is it greater than marginal cost?
When the average total cost (ATC) is at its minimum, it is equal to the marginal cost (MC). This is because, at this point, the cost of producing one more unit (MC) is neither pulling the average cost up nor down. If MC were greater than ATC, it would increase the ATC, and if MC were less than ATC, it would decrease the ATC. Therefore, at the minimum point of ATC, MC and ATC are equal.
Marginal cost equals marginal revenue?
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
