Sonam posted an Question
September 20, 2021 • 16:52 pm 30 points
  • UGC NET
  • Commerce

Please explain , mc is greater than ac if and only if chng in ac / chng in q is greater than 0

please explain , MC is greater than AC if and only if chng in AC / chng in Q is greater than 0

1 Answer(s) Answer Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • Rucha rajesh shingvekar best-answer

    When the MC is smaller the AC, the AC decreases. This is because when the extra unit of output is cheaper than the average cost then the AC is pulled down. Similarly, when the MC is greater than the AC, the AC is pulled up. The point of intersection between the MC and AC curves is also the minimum of the AC curve.

    cropped7271449615558394715.jpg
whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers