Question: Why does the short-run MC curve cut both the ATC and AVC curves at their minimum points?

Why does the short-run MC curve cut both the ATC and AVC curves at their minimum points?

Step by Step Solution

★★★★★

3.40 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

If MC is less than average costs total or variable then each additional unit produced ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

363-B-E-M-E (3605).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

The MC curve intersects the AVC and ATC curves at their respective minimum points. 1. State the average-marginal rule. 2. Draw a graph depicting the relationships between MC, ATC, and AVC.

Q:

Why does the MC curve cut the ATC curve at the latters lowest point?

Q:

What is the production function? What does the short run production function hold constant?

Q:

4. Why does the short-run MC curve cut both the ATC and AVC curves at their minimum points?

Q:

Please fill out the table and answer the questions! Thank you! Figure A Give a one sentence economic interpretation of the fourth number in column 8. Quantity of Total Fixed Total Variable Total...

Q:

Why is it a mathematical necessity that the MC curve intersects the ATC and AVC curves at the minimum points of the ATC and AVC curves

Q:

The marginal cost curve a . Lies always below the average total cost ( ATC ) curveb.Lies always above the average variable cost ( AVC ) curvec.Intersects the ATC and AVC curves at their maximum...

Q:

he marginal cost curve intersects a. AFC curve at its minimum point. b. TVC curve at its minimum point. c. ATC and AVC curves at their minimum points. d. ATC curve at its maximum point

Q:

Identity the choice that best completes the statement or answers the question. Economics is defined as the study of: a. central planning b. Business c. how society manages its scarce resources d....

Q:

Carefully explain how changes in price would affect total revenue. That is, would total revenue increase, decrease or stay the same, and why? Price rises and demand is inelastic. Price falls and...

Q:

A grating in a spectrometer is illuminated with red light ( = 690 nm) and blue light ( = 460 nm) simultaneously. The grating has 10,000.0 slits/cm. Sketch the pattern that would be seen on a screen...

Q:

Risks Economic conditions in the U.S. and international markets could adversely affect our business and financial results. Our success depends substantially on the value of our brands and failure to...

Q:

26. LO.6 Wade filed his Federal income tax return on time but did not remit the balance due. Compute Wades failure to pay penalty in each of the following cases. Assume the IRS has not issued a...

Q:

Can customers go without the industrys product?.

Q:

Suppose the total benefit derived from a given decision, Q, is B(Q) = 25Q Q2 and the corresponding total cost is C(Q) = 5 + Q2, so that MB(Q) = 25 2Q and MC(Q) = 2Q. a. What is total benefit when Q...

Q:

An owner can lease her building for $100,000 per year for three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All revenues are received, and costs...

Q:

Youve recently learned that the company where you work is being sold for $275,000. The companys income statement indicates current profits of $10,000, which have yet to be paid out as dividends....

Q:

To help finance a major expansion, Bexon Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price...

Q:

Maggie's Skunk Removal Corp.'s 2015 income statement listed net sales of $13.9 million, gross profit of $9.20 million. EBIT of $7.0 million, net income available to common stockholders of $4.6...

Q:

Mike Bayles has just arranged to purchase a $500,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage has a 5.6 percent stated annual interest rate, compounded monthly, and...