(Solution) - In Table when output rises from 90 to 130 units -(2025 Original AI-Free Solution)

Discipline:

Type of Paper:

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

Paper Details

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?