Answered: The MC curve must be * rising when TC…

The MC curve must be * rising when TC is rising. less than AFC when the average cost is rising. greater than ATC when the average curve is rising. falling when the ATC curve lies below

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

The MC curve must be *

rising when TC is rising.
less than AFC when the average cost is rising.
greater than ATC when the average curve is rising.
falling when the ATC curve lies below the marginal curve.

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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