contestada

Which of the following is true regarding the relationship between marginal cost and average variable​ cost?O If MC is greater than ATC and AVC, then ATC and AVC will increase.
O The ATC and AVC curves intersect the MC curve at minimum MC.
O The MC curve, ATC curve, and AVC curve all intersect at the same point.
O At each level of output, MC is equal to difference between AVC and ATC.

Respuesta :

Answer:

Option (A) is correct.

Explanation:

There are certain cases for explaining the relationship between marginal cost curve, average variable cost curve and average total cost curve.

In the diagram,

  • When MC curve is at minimum, then

Both AVC and ATC falling.

  • When MC is greater than ATC and AVC, then

Both AVC and ATC will increase.

Marginal cost curve intersect average variable cost and average total cost at their minimum point.

Ver imagen Dryomys

Otras preguntas