The official site provide a PDF for proving its effectiveness, but to be very true a normal user can't get what the PDF is about, or what the study is been explained. You can actually read Total Curve reviews here on Consumer Health Digest
What is shown by a supply curve, is the marginal cost of the company that you are considering, from the point it crosses the average costs function.
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.
This is because if a marginal figure is less than an average figure, the new average figure will decrease.
the point where the marginal cost curve intersects the marginal revenue curve
Marginal Cost will keep increasing (have upward slope) because of the principle of diminishing marginal returns. The MC curve above the its intersection with AVC is the Supply Curve *because below minimum AVC, the firms stops production)
What is shown by a supply curve, is the marginal cost of the company that you are considering, from the point it crosses the average costs function.
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.
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.
This is because if a marginal figure is less than an average figure, the new average figure will decrease.
the point where the marginal cost curve intersects the marginal revenue curve
Marginal Cost will keep increasing (have upward slope) because of the principle of diminishing marginal returns. The MC curve above the its intersection with AVC is the Supply Curve *because below minimum AVC, the firms stops production)
Characteristics of Perfectly Competitive Market: Free entry / exit (no barriers to entry) Firms produce homogenous products There is perfect knowledge of the market Many Seller and Buyers Seller is a passive price taker Marginal Revenue Curve = Average Revenue = Price = Demand Curve for individual firm. The curve is constant Marginal Cost Curve intersects both Average Variable Cost and Average Total Cost curves at their minimum point Profit Maximisation output level is when MR = MC (find intersect point and draw line down to Q axis)
Marginal cost curve above the average variable cost curve, is the same as the short run supply curve. In perfect competition, MC=Price. It follows that production will be at that point. Hence the supply curve is the same as that part of the MC curve which is above AVC, where the firm can cover its variable cost....this is better than shutting down.
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
as the total average cost is U shape the MC will intersect with U shape at lowest point to indicate the break even point where the company does not make neither profit nor loss. and this minimum point is known as the efficient scale that minimize the losses but does not maximize profit
AVC=AC-AFC,the AVC curve is simply the vertical difference between the AC and AFC curve, AFC gets less, the gap between AVC andAC narrows.since all marginal costs are variable ,the same relationship holds between MC and AVC as it did between MC and AC ,that is ,when MC is less than AVC ,it must be falling, if MC is greater than AVC .it must be rising, so ,as with the AC curve ,the MC curve crosses the AVC curve at its minimum point
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.