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lawyer [7]
3 years ago
8

Assume that the marginal cost​ (MC) of production is increasingincreasing. Can you determine whether the average variable cost​

(AVC) is increasing or​ decreasing? Explain.
Business
1 answer:
ki77a [65]3 years ago
3 0

Answer:

YES - When marginal cost​ (MC) of production is increasing, the average variable cost​ (AVC) is increasing.

Explanation:

Marginal cost (MC) is the cost of producing an extra unit of output while Average variable cost (AVC) is the cost per unit of output produced.

When MC is below AVC, MC pulls the average down. This means that when MC is falling, AVC is falling

When MC is above AVC, MC is pushing the average up; therefore when MC is rising, AVC is rising.

The conclusion is that MC and AVC have a direct relationship and a rise in one will cause a rise in the other , therefore when the marginal cost​ (MC) of production is increasing, the average variable cost​ (AVC) is increasing.

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The book value of the bond at the end of year 10 is 1,160

What is the basis for determining premium amortization?

The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.

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Find out more about bond premium on:brainly.com/question/14814327

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