Answer the following questions:

1. Explain the relationship between Marginal Cost and Marginal Revenue when Profit is maximized?

2. Define “Average Variable Cost.”

3. What is “Average Fixed Cost” and why is it important?

4. How are “Average Total Cost” and “Average Variable Cost” different?

5. Explain the impact of new production technology on Average Total Cost.

6. Why are Average Cost Curves U-shaped?

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1 If the marginal cost increased it effects on the marginal return of company The decrease of produc... View the full answer