Why Does Mc Curve Cut Ac Curve At Its Minimum at Carmine Hafford blog

Why Does Mc Curve Cut Ac Curve At Its Minimum. Since marginal cost is the individual firm's supply curve, it follows that when price equals the minimum of total cost, the firm produces the quantity at the crossing point. My first part simply takes ac = c(q)/q and ac' eventually after simplifying leads to c'(q) = c(q)/q [given ac=0 at min point] so thus c'(q) = mc and therefore at the min point ac =. So when ac has negative gradient, mc<ac; Therefore for as long ac is increasing, mc is above ac. With increasing marginal cost, it should also be a global maximum because the average cost is growing more slowly than the marginal cost. If it is zero, we have a local minimum. A logical understanding of why the mc curve cuts the ac curve at its lowest point. Marginal costs (mc) decrease initially as additional workers are added & the marginal product is increasing.

Explain briefly in two points the relationships between MC and AVC with
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A logical understanding of why the mc curve cuts the ac curve at its lowest point. So when ac has negative gradient, mc<ac; Therefore for as long ac is increasing, mc is above ac. Marginal costs (mc) decrease initially as additional workers are added & the marginal product is increasing. With increasing marginal cost, it should also be a global maximum because the average cost is growing more slowly than the marginal cost. Since marginal cost is the individual firm's supply curve, it follows that when price equals the minimum of total cost, the firm produces the quantity at the crossing point. My first part simply takes ac = c(q)/q and ac' eventually after simplifying leads to c'(q) = c(q)/q [given ac=0 at min point] so thus c'(q) = mc and therefore at the min point ac =. If it is zero, we have a local minimum.

Explain briefly in two points the relationships between MC and AVC with

Why Does Mc Curve Cut Ac Curve At Its Minimum A logical understanding of why the mc curve cuts the ac curve at its lowest point. If it is zero, we have a local minimum. A logical understanding of why the mc curve cuts the ac curve at its lowest point. Therefore for as long ac is increasing, mc is above ac. Since marginal cost is the individual firm's supply curve, it follows that when price equals the minimum of total cost, the firm produces the quantity at the crossing point. My first part simply takes ac = c(q)/q and ac' eventually after simplifying leads to c'(q) = c(q)/q [given ac=0 at min point] so thus c'(q) = mc and therefore at the min point ac =. With increasing marginal cost, it should also be a global maximum because the average cost is growing more slowly than the marginal cost. So when ac has negative gradient, mc<ac; Marginal costs (mc) decrease initially as additional workers are added & the marginal product is increasing.

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