So when marginal cost less than average cost then average cost is decreasing.
Here from the given question, we know that marginal cost intersect the common trendy rate and average variable fee curve at the bottom issue in order marginal cost curve is going down it pulls the commonplace rate curve down as well and as it is going up , it pulls the average cost curve upward as nicely.
The marginal cost refers back to the boom in manufacturing fees generated by way of way of the manufacturing of additional product gadgets. it is also referred to as the marginal price of manufacturing. Calculating the marginal rate lets in groups to peer how amount output affects fee and as a result, in the long run, profits.
In economics, the marginal cost is the exchange in the total charge that arises while the quantity produced is incremented, the rate of producing extra quantity.
Marginal fees are the prices related to generating a in addition unit of output. it's miles calculated because the trade in standard production prices divided through the trade within the range of units produced. Marginal charges exist when the entire cost of producing consists of variable expenses.
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