(Solution) - In Table when output rises from 90 to 130 units -(2025 Original AI-Free Solution)
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In Table, when output rises from 90 to 130 units, marginal cost is $3.00. For this change in output, marginal cost is greater than the previous AVC ($2.67) but less than the previous ATC ($4.33). According to the relationship between marginal?s and averages you learned in this chapter:
a. What should happen to AVC due to this change in output? Does it happen?
b. What should happen to ATC due to this change in output? Does ithappen?
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