Question: Why do marginal cost curves intersect both the average variable
Why do marginal cost curves intersect both the average variable cost curve and the average cost curve at their lowest point?
Answer to relevant QuestionsWhy might it make sense for a firm which cannot sell its output at a profit to continue in production for the time being? For how long should the firm continue to produce at a loss?Think of three examples of monopolies (local or national) and consider how contestable their markets are.Would it be possible for firms to calculate their maximum-profit output if they did not use marginal cost and marginal revenue concepts?Why does the marginal revenue product differ betweenworkers in different jobs?Under what circumstances would a rise in income tax act as (a) a disincentive and (b) an incentive to effort?
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