In Table, when output rises from 90 to 130 units, marginal cost is $3.00. For this change

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In Table, when output rises from 90 to 130 units, marginal cost is $3.00. For this change in output, marginal cost is greater than the previous AVC ($2.67) but less than the previous ATC ($4.33). According to the relationship between marginal€™s and averages you learned in this chapter:
a. What should happen to AVC due to this change in output? Does it happen?
b. What should happen to ATC due to this change in output? Does ithappen?
In Table, when output rises from 90 to 130 units,
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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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