Which of the following is true of the relationship between marginal cost and average cost?If MC is less than ATC, then ATC is increasing.
What is relationship between marginal cost and average cost?When the average cost increases, the marginal cost is greater than the average cost. When the average cost stays the same (is at a minimum or maximum), the marginal cost equals the average cost.
Which of the following is true of the relationship between the marginal cost function and the average total cost and average variable cost functions?The answer is (b) If MC is greater than ATC and AVC, then ATC and AVC will increase. When the marginal cost (MC) curve is above the average total cost (ATC) curve and average variable cost (AVC) curve, then increasing the production by a unit increases both the ATC and AVC.
What is the relationship between marginal cost and average cost curve Mcq?When MC is equal to AC, i.e. when MC and AC curves intersect each other at point A, AC is constant and at its minimum point. When MC is more than AC, AC rises with an increase in output, i.e. from 5 units of output. Thereafter, both AC and MC rise, but MC increases at a faster rate as compared to AC.
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