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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.

Q: What is the relationship between marginal cost and average cost curves?

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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.

The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.

what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.

what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.

Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.

Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.

go ahead. Keep cheapening what a beautiful thing a committed relationship can be

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)

The product establishes the cost curve or the relationship between costs and outputs. Costs are influenced by the need and function of a certain product.

Relationship between Lorenz curve and Gini coefficient is the more the Lorenz line curves away from the line of equality, the greater the degree of inequality represented.

The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output. Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20 The Econ Model applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.

Concave curves in (like a cave) = ) and convex curves out = (