Time: 1 hour, 34 minutes, 37 Question Completion Status: Exhibit 9-3 shows the v

Question

Time: 1 hour, 34 minutes, 37 Question Completion Status: Exhibit 9-3 shows the various cost curves of a firm. Points A and B are the minimum points of ATC and AVC, respectively. In the figure, the marginal cost pulls the average total cost upward: MC ATC AVC 0 10 20 30 40 0 o 0 90 100 a.between Point B and Point A Ob. between Point C and Point A. °C, between Point C and Point B. d. beyond Point A Click Save and Submit to save and submit. Click Save All Answers to save all answers Save All Answers

Explanation / Answer

Ans is D

Average total cost increases when MC>ATC.

Thus clearly MC >ATC when outout is beyond point A.

Realtion between MC and ATC

When Mc>ATC, ATC increases

When MC<ATC, ATC decreases and MC intersect ATC at min of ATC.

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