a) Using the definition Q x AC = TC where Q = output, TC = the total cost of production and AC = the average cost of production, and the technique of calculus, show that marginal cost is greater (less) than average costiwhen average cost is rising (falling).

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Chapter7: Production And Cost In The Firm
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a) Using the definition Q x AC = TC where Q = output, TC = the total cost of production and
AC = the average cost of production, and the technique of calculus, show that marginal cost
is greater (less) than average costwhen average cost is rising (falling).
Transcribed Image Text:a) Using the definition Q x AC = TC where Q = output, TC = the total cost of production and AC = the average cost of production, and the technique of calculus, show that marginal cost is greater (less) than average costwhen average cost is rising (falling).
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