Asked by
Jamie Portier
on Oct 12, 2024
Verified
When the average total cost is at its minimum,it is
A) greater than MC.
B) equal to MC.
C) smaller than MC.
Average Total Cost
The sum of all production costs divided by the quantity of output produced, representing the per-unit cost.
Marginal Cost
Marginal cost refers to the increase or decrease in the total cost when the quantity produced is incremented by one unit.
- Discern the outlines of cost curves involving average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC).
- Gain an understanding of the concept and numerical determination of marginal cost (MC).
Verified Answer
GP
Learning Objectives
- Discern the outlines of cost curves involving average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC).
- Gain an understanding of the concept and numerical determination of marginal cost (MC).