Asked by Darian Appelt on Apr 29, 2024
Verified
Describe the relationship between average variable cost and marginal cost.
Marginal Cost
The variation in overall expenses that occurs with the production of an additional unit.
- Elucidate the connection between average variable cost, average total cost, and marginal cost.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
If marginal cost (MC) is greater than average variable cost (AVC), then AVC will increase. If MC is less than AVC, then AVC will decrease. If MC equals AVC, then AVC is unchanged. The minimum of AVC curve will intersect with the MC curve.
Learning Objectives
- Elucidate the connection between average variable cost, average total cost, and marginal cost.