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QUESTION 3 When average total cost is at its minimum: a. marginal cost is equal to average total cost b. average variable cos

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Answer #1

The answer is option a- marginal cost is equal to average total cost.

The marginal cost is lower than the average total cost when the average total cost is decreasing. The marginal cost is higher than the average total cost when the average total cost increases. As a result, if the average total cost is at its minimum, the marginal cost is equal to the total average cost. Also, if the average variable cost is at its minimum, the average variable cost is equal to the marginal cost.

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Answer #2

Total cost is equal to the

A) sum of the total fixed cost and the total variable cost.

B) sum of the average fixed cost and the average variable cost.

C) difference between the average variable cost and the average fixed cost.

D) product of the marginal cost multiplied by the average total cost.

 


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Answer #3

Total cost is equal to the

A) sum of the total fixed cost and the total variable cost.

B) sum of the average fixed cost and the average variable cost.

C) difference between the average variable cost and the average fixed cost.

D) product of the marginal cost multiplied by the average total cost.

 


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