Asked by
Miracle Gonzales
on Nov 04, 2024
Verified
If marginal cost equals average variable cost, average variable cost will
A) be maximized.
B) decrease.
C) increase.
D) be minimized.
Average Variable Cost
The variable costs associated with production, when divided by the number of units produced, indicate the cost per unit.
Marginal Cost
The cost of producing one additional unit of a good or service, an important concept in economics for determining the optimal level of production.
- Comprehend the principles of Marginal Cost (MC), Average Variable Cost (AVC), Average Fixed Cost (AFC), Total Variable Cost (TVC), Total Fixed Cost (TFC), Total Cost (TC), and Average Total Cost (ATC).
- Ascertain the intersection point of the marginal cost curve with the average total cost and average variable cost curves, and appreciate the implications of these junctures.
Verified Answer
JG
Learning Objectives
- Comprehend the principles of Marginal Cost (MC), Average Variable Cost (AVC), Average Fixed Cost (AFC), Total Variable Cost (TVC), Total Fixed Cost (TFC), Total Cost (TC), and Average Total Cost (ATC).
- Ascertain the intersection point of the marginal cost curve with the average total cost and average variable cost curves, and appreciate the implications of these junctures.