Solutions? o 11/10/2017 11:55 PM O 362/1001 1/10/2017 07:28 PM Gradebook Print Q

Question

Solutions? o 11/10/2017 11:55 PM O 362/1001 1/10/2017 07:28 PM Gradebook Print Question 10 of 22 Mapc Sapling Learning Graph A Graph D Each graph below illustrates three short run cost curves for firms, where ATC is Average Total Cost (aka Average Cost, MC is Marginal Cost, and AV is Average Variable Cost. MC MC AVC Cost Cost ATC ATC AVC Please sort the graphs as valid or invalid based on what you know about the relationships between these curves. Output Output Graph B Graph E MC Valid Graph B Graph F Invalid MC Graph A Graph D AVC Cost ATC Graph C Graph E AVC Output Graph C Graph F Outpu MC MC ATC ATC Cost Cost AVC Output 9Hint -O Previous Give Up & View Solution O check Answer e Next Exit

Explanation / Answer

ATC=AFC+AVC

i.e, average total cost= average fixed cost+average variable cost.

So ATC curve always be above the AVC.

MC curve always passes through the minimum point of AVC and AFC.

Graph A is invalid as ATC is below the AVC.

Graph B is valid as ATC is above AVC. MC passes through the minimum point of ATC and AVC.

Graph C is invalid as MC does not pass through the minimun point of ATC and AVC.

Graph D is invalid as MC does not pass through the minimum point of ATC.

Graph E is invalid as MC does not pass through the minimum point of ATC.

Graph F is valid as MC passes through the minimum point of ATC and AVC. ATC is above the AVC

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.