lectur21-page3

Lectur21-page3 - The only way for AVC to decrease(fall is for the extra cost of the next unit produced(MC to be less than the AVC of all the

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4. Marginal cost (MC) : a. This curve also decreases at first, reaches a minimum, then increases. b. Relationship between MC and Average costs : When MC < AVC AVC are decreasing When MC > AVC AVC are increasing c. THINK !!
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Unformatted text preview: The only way for AVC to decrease (fall) is for the extra cost of the next unit produced (MC) to be less than the AVC of all the preceding units. d. MC intersects AVC and ATC at their minimum....
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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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