High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC 9MALL Quantity of Output At low levels of output, ATC is high because AFCI high-the fixed plant is underutiized. At high levels of output (dlose to capacity), the fixed plant is overutilized, leading to high MC and, consequently, high ATC. It is diminishing marginal product that causes the MC, and eventually the AVC and ATC, to rise. In U-Shaped Average Total Cost Curve above Section 11.4 exhibit 2, why does AFC continue to fall even while ATC rises at very high output? Cost per Unit (dollars)

High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC 9MALL Quantity of Output At low levels of output, ATC is high because AFCI high-the fixed plant is underutiized. At high levels of output (dlose to capacity), the fixed plant is overutilized, leading to high MC and, consequently, high ATC. It is diminishing marginal product that causes the MC, and eventually the AVC and ATC, to rise. In U-Shaped Average Total Cost Curve above Section 11.4 exhibit 2, why does AFC continue to fall even while ATC rises at very high output? Cost per Unit (dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How would I describe these?