Ur probably in Farzads class... hah xD
No because it does not produce at minimum average total cost
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
Per hour, the average wage is a minimum of £5 +, what do you mean by average cost??
mesh
No because it does not produce at minimum average total cost
Ur probably in Farzads class... hah xD
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
Equal to MC.
Per hour, the average wage is a minimum of £5 +, what do you mean by average cost??
mesh
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
formula for carrying cost?
Overhead cost is part of total cost and not different from total cost as formula is as follows: Total cost = material cost + labor cost + overhead cost
minimum - 10000 Maximum- 10,0000
minimum is less
Marginal cost curve cuts average cost (variable or total cost) at its minimum simply to portray the law of variable proportions. The idea is as labor is increased with capital being fixed, productivity increases upto a point and then decreases and later becomes negative. To relate the same productivity with average cost function, the average cost first decreases , reaches a minimum and then increases. Now marginal cost is just a change in the total cost. Logic says that when MC is less than AC productivity is favourable, thus cost is falling. When MC is more than AC productivity is not favourable and thus the rising portion of the cost curve. When MC = AC , the productivity that was reducing the average cost per unit has maximized and from then on starts rising cost(or decreasing productivity). That is the only point where they can intersect.