lectur21-page2

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

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.

Ask a homework question - tutors are online