What is relationship between total revenue (TR) and total variable cost (VC) if the price is equal to the AVC (tangent to the minimum AVC), (is TR greater, less, or equal to VC)? What do we call this point?

Relationship between TR and TVC 1. TR represents sum of MR and TVC represents Sum of MC Gross…

Answered: total revenue (TR) and total variable…

Business

Economics

total revenue (TR) and total variable cost (VC) if the price is equal to the AVC

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 9WNG

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Question

What is relationship between total revenue (TR) and total variable cost (VC) if the price is equal to the AVC (tangent to the minimum AVC), (is TR greater, less, or equal to VC)? What do we call this point?

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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