What is the difference between average total cost and marginal cost and are they ever equal to each other?
What will be an ideal response?
Average total cost is total cost divided by output. Marginal cost is the change in total cost divided by the change in output. Marginal cost equals average total cost when the average total cost is at its minimum.
Economics
You might also like to view...
Only ________ can issue monoline insurance policies
A) life insurance companies B) insurance companies that issue multiple types of insurance C) property insurance companies D) insurance companies that specialize in credit insurance alone
Economics
Refer to Figure 6.3. Suppose the price of pizza is $9.75. Then consumer surplus is:
A. $3.75.
B. $3.50.
C. $29.25.
D. $33.00.
Economics