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What are the general principles about marginal and average total cost curves?
General principles which are always true concerning a firm’s marginal and average total cost curves as follows:
a. Average total cost is equal to marginal cost at the minimum-cost output.
b. Marginal cost is less than average total cost and average total cost are falling at output less than the minimum-cost output.
c. And marginal cost is greater than average total cost and average total cost is increasing at output greater than the minimum-cost output.
a) Summarize the basic tenets of the arguments in this case. b) Do you agree with main tenets of the arguments in the case? Why? Justify your answer with detailed explanations. s
THE PRODUCT MARKET Z=C+I+G C=a+bYd I=Io+I1Y-I2i Equilibrium condition, Y=Z, where Y represents output and Z is aggregate spending. THE FINANCIAL MARKET Md=MT+Mp MT=MTo+MT1Y Mp=Mpo
1. What is law of diminishing marginal utility? 2. Find out the marginal utility for the following schedule of consuming pizza Pizza consumed 0
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