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What is happening to average total costs when they equal marginal cost?
That is were u now got your total cost
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
How do you derive the total cost function from the average cost function?
Average cost = Total cost / number of units of a good produced. So Total cost = Average cost X No. of units of a good produced
What is happening to average variable costs when they equal marginal costs?
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
What is the Formula of average total cost?
Total cost divided by the times that cost has been paid for. For example, if the costs were 1, 2, 3 and 4 (of whatever currency), then the average cost would be 1+2+3+4 / 4 (because there were only 4 times when the cost was produced) which woul be equal to 2.5.
What is happening to average total costs when they equal marginal cost?
That is were u now got your total cost
What is the meaning of shutdown point?
The shutdown point is the output level at which total revenue is equal to the total variable cost. Here the product price is also equal to its average variable cost.
When the average total cost is at its minimum is it greater than MC equal to MC or smaller than MC?
Equal to MC.
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
How do you derive the total cost function from the average cost function?
Average cost = Total cost / number of units of a good produced. So Total cost = Average cost X No. of units of a good produced
What is cost What is the difference between total cost and average cost?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
What is happening to average variable costs when they equal marginal costs?
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
What is the Formula of average total cost?
Total cost divided by the times that cost has been paid for. For example, if the costs were 1, 2, 3 and 4 (of whatever currency), then the average cost would be 1+2+3+4 / 4 (because there were only 4 times when the cost was produced) which woul be equal to 2.5.
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
When marginal revenue equal to marginal cost?
At this intersection point on a graph, firms will earn maximum profit, even if this point is under average total cost.
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.
If average total cost is greater than marginal cost average total cost must be increasing is the true or false?
true
