When marginal costs are below
Concept Introduction:
Marginal cost: The marginal cost is the additional cost derived from producing an additional unit of good. The marginal cost curve is a ‘U’ shaped curve where the costs will be high at the beginning but as the production increases the marginal costs goes down then after a point it will rise again. The marginal costs are calculated by dividing the change in total cost divided by change in the quantity.
Average total cost: It’s the average total cost per unit of output. Average total cost is the summation of both
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Economics Today: The Micro View (19th Edition) (Pearson Series in Economics)
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