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Why does the marginal cost curve cut the average total cost curve at its minimum?
Ur probably in Farzads class... hah xD
Is a Monopolistically competitive firm productively efficient?
No because it does not produce at minimum average total cost
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 an average cost is at its minimum then?
Per hour, the average wage is a minimum of £5 +, what do you mean by average cost??
When average cost is at its minimum then marginal cost will be?
mesh
Why does the marginal cost curve cut the average total cost curve at its minimum?
Ur probably in Farzads class... hah xD
Is a Monopolistically competitive firm productively efficient?
No because it does not produce at minimum average total cost
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 the average total cost is at its minimum is it greater than MC equal to MC or smaller than MC?
Equal to MC.
When an average cost is at its minimum then?
Per hour, the average wage is a minimum of £5 +, what do you mean by average cost??
When average cost is at its minimum then marginal cost will be?
mesh
What does it mean if a firm has excess capacity?
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
What is formula of minimum carrying cost?
formula for carrying cost?
What Is The Minimum cost of 2BHK flat interior?
minimum - 10000 Maximum- 10,0000
Is total cost different from overhead cost?
Overhead cost is part of total cost and not different from total cost as formula is as follows: Total cost = material cost + labor cost + overhead cost
Does marginal cost always intersect average cost at minimum average cost?
NTERSECTS
Why does the marginal cost curve cut through the average variable cost curve exactly at the minimum of the average variable cost curve?
Marginal cost curve cuts average cost (variable or total cost) at its minimum simply to portray the law of variable proportions. The idea is as labor is increased with capital being fixed, productivity increases upto a point and then decreases and later becomes negative. To relate the same productivity with average cost function, the average cost first decreases , reaches a minimum and then increases. Now marginal cost is just a change in the total cost. Logic says that when MC is less than AC productivity is favourable, thus cost is falling. When MC is more than AC productivity is not favourable and thus the rising portion of the cost curve. When MC = AC , the productivity that was reducing the average cost per unit has maximized and from then on starts rising cost(or decreasing productivity). That is the only point where they can intersect.
