Question: Question 1 Average cost, average variable cost and average Average cost fixed cost Average (E) +x variable cost +V +7 X Average AN fixed cost

Question 1 Average cost, average variable cost and average Average cost fixed cost Average (E) +x variable cost +V +7 X Average AN fixed cost Quantity of output (units) a) Explain two differences between the short and the long run. b) Explain why average variable cost and average total cost rise after +Z on the above diagram and average fixed cost continues to fall after Z on the diagram. c) Explain the relationship between marginal cost and average cost

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