Question

8. Working with Numbers and Graphs Q9 When marginal cost is greater than average total cost, the average total cost will be . When marginal cost is less than average total cost, the average total cost will be . Therefore, the marginal cost curve intersects the average total cost curve

Answer 1

Answer:

Rising; Falling; At minimum point of average total cost curve

Explanation:

Average total cost refers to the per unit cost of producing the output.

Marginal cost refers to the cost of producing an additional unit of the commodity.

When the marginal cost is greater than the average total cost, then the average total cost is rising.

When the marginal cost is less than the average total cost, then the average total cost is falling.

Marginal cost curve intersects the average total cost curve at its minimum point. At this point of intersection, the marginal cost is equal to the average total cost.