$9 MC $8 $7 $6 АТС $5 AVC $4 $3 $2 $1 $0 1 2 3 5 Output (Q) In the diagram above, when the firm's Output (Q) increases from 1 to 2, Average Total Cost (ATC) falls from $8 to $ This is because: Average Variable Cost (AVC) is falling in this output range. Marginal Cost (MC) is less than Average Total Cost (ATC) in this output range. Marginal Cost (MC) is falling in this output range. Marginal Cost (MC) has reached its minimum in this output range. O O
$9 MC $8 $7 $6 АТС $5 AVC $4 $3 $2 $1 $0 1 2 3 5 Output (Q) In the diagram above, when the firm's Output (Q) increases from 1 to 2, Average Total Cost (ATC) falls from $8 to $ This is because: Average Variable Cost (AVC) is falling in this output range. Marginal Cost (MC) is less than Average Total Cost (ATC) in this output range. Marginal Cost (MC) is falling in this output range. Marginal Cost (MC) has reached its minimum in this output range. O O
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 7PA
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Question
![Question 13 of 20
$9
MC
$8
$7
$6
АТС
$5
AVC
$4
$3
$2
$1
$0
1
2
3
4
5
Output (Q)
In the diagram above, when the firm's Output (Q) increases from 1 to 2, Average Total Cost (ATC) falls from $8 to $5.
This is because:
O Average Variable Cost (AVC) is falling in this output range.
Marginal Cost (MC) is less than Average Total Cost (ATC) in this output range.
Marginal Cost (MC) is falling in this output range.
Marginal Cost (MC) has reached its minimum in this output range.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b551779-a94f-4658-8ab9-cb1269496a60%2F364d6e6e-f4c4-4efd-98bb-9eafb34ac29d%2Fakguskq_processed.png&w=3840&q=75)
Transcribed Image Text:Question 13 of 20
$9
MC
$8
$7
$6
АТС
$5
AVC
$4
$3
$2
$1
$0
1
2
3
4
5
Output (Q)
In the diagram above, when the firm's Output (Q) increases from 1 to 2, Average Total Cost (ATC) falls from $8 to $5.
This is because:
O Average Variable Cost (AVC) is falling in this output range.
Marginal Cost (MC) is less than Average Total Cost (ATC) in this output range.
Marginal Cost (MC) is falling in this output range.
Marginal Cost (MC) has reached its minimum in this output range.
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