Chp 5 Production and Costs

Question 1

MP = _____ at _______ ?

Answer 1

MP = AP at AP’s Maximum

Question 2

MP determines _____

Answer 2

AP

Question 3

When MC < ____ or ____ , what happens?

Answer 3

ATV and AVC decrease

Question 4

When MC > ____________, what happens?

Answer 4

ATC AND AVC INCREASE