question archive The marginal cost curve (i) Suppose a firm’s short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input? (ii) Comment on the following statement: “Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs Therefore, marginal cost is never greater than average cost“
The marginal cost curve (i) Suppose a firm’s short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input? (ii) Comment on the following statement: “Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs Therefore, marginal cost is never greater than average cost“
Subject:EconomicsPrice: Bought3
The marginal cost curve
(i) Suppose a firm’s short-run average cost curve is U
shaped: what does this imply about the marginal return to the variable input?
(ii) Comment on the following statement: “Average cost includes both fixed
and variable costs, whereas marginal cost only includes variable costs
Therefore, marginal cost is never greater than average cost“
