Question

ECON 102004 Jan 2019) MyEconLab for Ragan, Macroeconomics 15c Quiz: Chapter 2 Time Re This 2 pts Use the point drawing tool in the graph to the right to idendify the section of the function where the marginal average cost to stoel production is negative. Label this point "A Carefully follow the instructions above, and only draw the required object Moving along the curve in a southeast direction from point A Indicates that the marginal response of average cost to steal A. decreasing. е в. rareasing. C. indeterminate O D. not changing (5.1,5.09) Point tool

Answer 1

Point A should be at that part where the graph is decreasing i.e. left to where it is now. It is because for a change in production average cost is decreasing as we can see graph is downwards sloping. Also if we see to the right the graph is increasing as the graph is convex that is at any point another point to the right will have higher slope. So increasing