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Does marginal cost curve always intersect the average cost curve at the average cost curve's lowest point?
Wiki User
∙ 16y ago
When the marginal cost is below the average total costs or the average variable costs,then the AC would be declining.When marginal cost is above the average cost then the average cost would be increasing.Therefore the marginal cost should intersect with the average cost at the lowest point in order to pull the average cost upwards.
Wiki User
∙ 16y ago
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Is sustainable long-run equilibrium always reached when the AD and SAS curves intersect?
no
Identify the characteristics of a perfectly competitive market and explain how the marginal revenue marginal cost average revenue average variable cost average total cost and price curves all interact?
Characteristics of Perfectly Competitive Market: Free entry / exit (no barriers to entry) Firms produce homogenous products There is perfect knowledge of the market Many Seller and Buyers Seller is a passive price taker Marginal Revenue Curve = Average Revenue = Price = Demand Curve for individual firm. The curve is constant Marginal Cost Curve intersects both Average Variable Cost and Average Total Cost curves at their minimum point Profit Maximisation output level is when MR = MC (find intersect point and draw line down to Q axis)
Relationship between marginal cost and average total cost?
The cost curves best tells us the relationship between the marginal cost and average total cost. The average fixed cost (AFC) curve will decline as additional units are produced, and continue to decline.
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
What is located at the point where the supply and demand curves intersect?
The equilibrium price.
Is sustainable long-run equilibrium always reached when the AD and SAS curves intersect?
no
Identify the characteristics of a perfectly competitive market and explain how the marginal revenue marginal cost average revenue average variable cost average total cost and price curves all interact?
Characteristics of Perfectly Competitive Market: Free entry / exit (no barriers to entry) Firms produce homogenous products There is perfect knowledge of the market Many Seller and Buyers Seller is a passive price taker Marginal Revenue Curve = Average Revenue = Price = Demand Curve for individual firm. The curve is constant Marginal Cost Curve intersects both Average Variable Cost and Average Total Cost curves at their minimum point Profit Maximisation output level is when MR = MC (find intersect point and draw line down to Q axis)
Relationship between marginal cost and average total cost?
The cost curves best tells us the relationship between the marginal cost and average total cost. The average fixed cost (AFC) curve will decline as additional units are produced, and continue to decline.
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
What is point located at the supply and demand curves intersect?
The equilibrium price.
What is located at the point where the supply and demand curves intersect?
The equilibrium price.
What is the relationship between marginal cost and average cost curves?
Margianal cost curve crosses the average total cost curve at the lowest point on the average total cost curve to be socially and ecomonical efficient.
What figures intersect but are not perpendicular?
Any lines or curves that are mutually skew.Any lines or curves that are mutually skew.Any lines or curves that are mutually skew.Any lines or curves that are mutually skew.
Why do the demand and marginal revenue curves coincide?
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
What are some things that intersect?
Lines, curves, planes, solid shapes are some.
What are characteristics of an indifference curve?
indifferent curves are convex to their origin, they do not intersect, and have a negative slope
Why can't indifference curves intersect?
This is because the intersection would be impossible. If they crossed then they would have the same utility rather than being two different curves.
