Marginal and Average costs Flashcards

1
Q

Marginal Cost equation

A

MC = change in total cost/ change in average cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Average cost equation

A

AC = total cost / Quantity

average fixed cost + average variable cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is marginal cost

A

marginal cost is the extra cost when producing one more unit of output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

MC curve looks like

A

Looks like a nike tick because of the law of diminishing returns

firstly there is increasing labour productivity and increasing marginal product because of specialisation between workers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly