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State the relationship between (ATC) average total cost, and marginal cost (MC) when ATC is decreasing, is ATC is above (greater), equal, or less (below)
- State the relationship between (ATC) average total cost, and marginal cost (MC) when
- ATC is decreasing, is ATC is above (greater), equal, or less (below) than MC? ________ choose one
- ATC is minimum, is ATC is above, equal or less than MC? __________ choose one
- ATC is increasing, is ATC is above, equal, or less than MC? _________ choose one
- If production increases, what happens to average fixed cost (AFC), does it increase only, decrease only, or decrease, increase and then increase? _______________ choose one
- If production increases, what happens to average variable cost (AVC), does it increase only, decrease only, or decrease, increase and then increase? _______________ choose one
- If production increases, what happens to average total cost (ATC), does it increase only, decrease only, or decrease, increase and then increase? _______________ choose one
- Graph AFC, AVC, AVC, label your graphs (what you plot on the horizontal and vertical axes).
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