lectur21-page2 - however, AVC begins to rise while AFC...

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3. Average total costs (ATC) : a. ATC has similar shape of AVC. However, it falls faster than AVC in the beginning and rises slower after reaching its minimum point. b. WHY? ATC = AFC + AVC AFC and AVC both fall in the beginning, at some point
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Unformatted text preview: however, AVC begins to rise while AFC continues to fall. When the increase in AVC OUTWEIGHS the decrease in AFC, the ATC will begin to increase forming the familiar U - shaped curve....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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