Answer: c. No, since the MC and AVC curve intersect at the minimum of AVC
Explanation:
Marginal cost is the cost of producing one extra unit of a product while average cost is the average of all the units produced so far. Therefore, when Marginal cost is low, it pulls the average costs down with it because it will be lower than the Average costs.
However, as Marginal costs start to rise, average cost will still be low because it is taking into account the lower previous marginal costs. Marginal cost will then keep rising until it intersects the average costs at it's minimum. Once this happens Average cost will start being pulled up because the current high costs will on average eclipse the current low costs.
Explanation:
strengths:
1. He or she enjoys all the profit
2. easy to start up
3. decision making is quick
4.he or she can vary the hours of work
weakness:
1.there is lack of finance
2. lack of specialised staff
3.the owner bears all the risk
4.there is unlimited liability
who might start a sole proprietor business
1. a person that wants to be their own boss.
2.extra income.
3.the entrepreneur might think he will make more money working for his self than others.
Economic theory and the data in the table show that the average total cost curve and the marginal cost curve are related in that the MC curve passes through the minimum point of the ATC curve.
<h3>What is the relationship between the MC and ATC curves?</h3><h3 />
The data given by the table (which is accurately filled up) shows that the MC curve will intersect the ATC curve at its lowest point.
We see this from the fact that before the lowest ATC of 0.107, the marginal cost was less than the ATC. After the lowest ATC however, the marginal cost becomes higher than the ATC.
This shows that the MC curve intersected the ATC at its lowest point of 0.107 and then kept rising above it.
Find out more on the MC curve at brainly.com/question/9335427.
