Question
Could anyone please explain the mechanism behind how cost curve works? i know that marginal costs(MC) cuts average total cost(ATC) and average variable cost(AVC) at
Could anyone please explain the mechanism behind how cost curve works? i know that marginal costs(MC) cuts average total cost(ATC) and average variable cost(AVC) at their minimum. However, i am not sure why when MC falls below the average cost curves (ATC and AVC), it causes the two curves to shift downward.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
