Variable and total cost curve , Microeconomics

Assignment Help:

Variable and Total cost curve 

174_short run cost.png

 

* Consequently (from the table which is given):

- MC initially decreases with increasing returns 

  • 0 through 4 units of output

- MC increases with the decreasing returns

  • 5 through 11 units of output

    983_variable cost curve.png
  • 2412_variable cost curve1.png

*  The line drawn from origin to tangent of variable cost curve:

-  Its slope equals AVC

-  The slope of point on VC equals MC

-  Thus, MC = AVC at 7 units of output (point A)

*  Unit Costs

-  AFC continuously falls

-  When MC < AVC or MC < ATC, AVC and ATC decrease

-  When MC > AVC or MC > ATC, AVC & ATC increase

-  MC = AVC and ATC at the minimum AVC and ATC

-  Minimum AVC occurs at lower output than minimum ATC because of FC 


Related Discussions:- Variable and total cost curve

Graphing, I can''t figure out how to graph the aggregate consumption functi...

I can''t figure out how to graph the aggregate consumption function and the aggregate saving function

Meaning and characteristics of plural sense and singlural , meaning and cha...

meaning and characteristics of plural sense and singlural

World trade organization, World Trade Organization: An international econom...

World Trade Organization: An international economic organization based in Geneva, Switzerland,formed in 1995 which is dedicated to promoting greater trade and investment among its

Approaches in attaining higher satisfaction, What are the 2 approaches in ...

What are the 2 approaches in which results into a higher satisfaction?

The demand for big macs, Ask question #Min1) Illustrate and explain the cha...

Ask question #Min1) Illustrate and explain the changing demand for big Mac using the indifference curve and budget line.imum 100 words accepted#

1, a) Consider the following flows (in thousand of people) between the vari...

a) Consider the following flows (in thousand of people) between the various labour market states in a particular month: UE = 240 000; UNLF = 180 000; EU = 190 000; NLFU = 220 000

What do you meant by real gdp, Q. What do you meant by Real GDP? Real G...

Q. What do you meant by Real GDP? Real GDP:Value of total gross domestic product (which is, all the services and goods produced for money in the economy) adjusted for effects o

Find the average residential water under the current split, Suppose you are...

Suppose you are a regulator in charge of allocating water between residential and agricultural users (farmers) in Southern California. You conduct a survey that finds that under th

Types of restraints and validation therapy, 1. Mrs Munyarryun, 67 years, ha...

1. Mrs Munyarryun, 67 years, has been retired from her work for two years. She rings for advice about urinary incontinence, a problem she has experienced over the last 6 months. Wh

Barometric forecasting, It is also known a sleadig indicators forecasting N...

It is also known a sleadig indicators forecasting National Bureau of Economic Research of U. S.A has identified three types of indicate Leading indicators coincidental indicators a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd