Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 22, Problem 3E
To determine
To explain:
The behaviour of ATC when MC>ATC, MC
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Students have asked these similar questions
Do AC and AVC intersects each other?
In 50 words, answer the following question:
In the class, we know the reason why the MC curve intersects the ATC curve at the minimum level of ATC. Actually, MC curve also intersects the AVC curve at the minimum level of AVC. Is it a coincidence? What make the similarity?
(Hint: How MC affect the change in ATC? Does it the same for AVC?)
Why does the ATC curve reach its minimum point further along the Quantity Axis than the AVC curve and a higher point along the MC curve?
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