On graph paper, draw the ATC, AVC, and MC curves for a competitive firm. 1. Why...

 

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On graph paper, draw the ATC, AVC, and MC curves for a competitive firm. 1. Why are they not straight lines? That is why do they first slope down and then increase? 2. Why does the ATC decline over a greater amount of output that the AVC declines? 3. Why do they switch direction when they cut MC? 4. What is true about the ATC when MC ATC? (Possible answers might be it is constant over the next 10 units, it is at a minimum, it is at a maximum, it is indeterminant, who knows and who cares...) On graph paper, draw the ATC, AVC, and MC curves for a competitive firm. 1. Why are they not straight lines? That is why do they first slope down and then increase? 2. Why does the ATC decline over a greater amount of output that the AVC declines? 3. Why do they switch direction when they cut MC? 4. What is true about the ATC when MC ATC? (Possible answers might be it is constant over the next 10 units, it is at a minimum, it is at a maximum, it is indeterminant, who knows and who cares...)

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Answer Explanation i a average total cost curve and the average variable cost curve and the marginal cost come first decline then they slope upward ii ... View the full answer