Study guides

☆

Q: How do you find marginal average cost?

Write your answer...

Submit

Still have questions?

Continue Learning about Economics

When the marginal cost is below the average total costs or the average variable costs,then the AC would be declining.When marginal cost is above the average cost then the average cost would be increasing.Therefore the marginal cost should intersect with the average cost at the lowest point in order to pull the average cost upwards.

as a marginal cost is the cost of the next product produced, if this is less than average cost, when you continue to produce more products the lower marginal cost will have an affect on the average and cause it to fall.

Marginal cost - the derivative of the cost function with respect to quantity. Average cost - the cost function divided by quantity (q).

Find the integral of the marginal cost.

Average cost declines and output increases.

Related questions

Find (i) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q = 4 and Q = 6.

relation ship between average cost and marginal cost

When the marginal cost is below the average total costs or the average variable costs,then the AC would be declining.When marginal cost is above the average cost then the average cost would be increasing.Therefore the marginal cost should intersect with the average cost at the lowest point in order to pull the average cost upwards.

as a marginal cost is the cost of the next product produced, if this is less than average cost, when you continue to produce more products the lower marginal cost will have an affect on the average and cause it to fall.

When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve.

Marginal cost - the derivative of the cost function with respect to quantity. Average cost - the cost function divided by quantity (q).

mesh

Find the integral of the marginal cost.

NTERSECTS

Marginal cost is the extra cost incurred in producing one unit of a product.If the marginal cost is more than average cost that means that costs are increasing and if it is less it means costs are decreasing.This way we find out how are business is progressing.

When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost

marginal cost

People also asked