116k views
0 votes
when the act curve is decreasing, we know that the mc curve is, and when the atc curve is increasing, we know that mc is

User ZhengCheng
by
4.8k points

1 Answer

7 votes

Answer:

When ATC curve is​ decreasing, we know that the MC curve is

below the ATC curve​, and when the ATC curve is​ increasing, we know that MC is above the ATC curve

Step-by-step explanation:

ATC refers to average total cost and MC refers to marginal cost, these both curve derive from total cost when MC is below ATC curve it shows that MC is less than ATC at that point ATC is falling.

Likewise, when MC is above ATC curve it shows MC is grater than ATC curve and at that point ATC is rising.

furthermore, when MC is equal to ATC at that point ATC is at minimum point.

User Mljrg
by
5.9k points