When marginal-cost curve lies: a. above the ATC curve, ATC rises b. above the AVC curve, ATC rises c. below the AVC curve, total fixed cost increases d. below the ATC curve, total fixed cost falls Please, show your answer graphically.
When marginal-cost curve lies: a. above the ATC curve, ATC rises b. above the AVC curve, ATC rises c. below the AVC curve, total fixed cost increases d. below the ATC curve, total fixed cost falls Please, show your answer graphically.
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 17P
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Question
When marginal-cost curve lies:
a. above the
b. above the
c. below the AVC curve, total fixed cost increases
d. below the ATC curve, total fixed cost falls
Please, show your answer graphically.
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