Question 45 When marginal cost equals to average total cost, Average total cost is minimized Average total cost is maximized Average total cost is rising Average total cost is falling
Added by Erica M.
Close
Step 1
Let C(q) be total cost at output q. Then average total cost is ATC(q) = C(q)/q and marginal cost is MC(q) = C'(q), with q > 0. Show more…
Show all steps
Your feedback will help us improve your experience
Haricharan Gupta and 81 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Marginal cost is equal to average variable cost when average variable cost is minimized.
Haricharan G.
Diminishing marginal returns implies Group of answer choices decreasing average variable costs. decreasing marginal costs. increasing marginal costs. decreasing average fixed costs.
Andrew D.
If the marginal cost is decreasing, is the average cost necessarily decreasing? Explain.
Techniques of Differentiation with Applications
A First Application: Marginal Analysis
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Watch the video solution with this free unlock.
EMAIL
PASSWORD