# What happens to MC after the point where it equals AVC?

## Below is hypothetical data for a manufacturer which possesses

Below is hypothetical data for a manufacturer which possesses

Question

Problems:

1. Below is
hypothetical data for a manufacturer which possesses a fixed plant

producing a commodity that requires only one variable
input. Total

Product is
given. Total Fixed Cost is \$220 per period. Units of the

variable input
cost \$100 per unit of variable input.. Complete the following table.

 Units of Var. Input T.P. A.P. M.P. T.F.C. T.V.C. T.C. A.F.C. A.V.C. A.T.C. M.C 1 100 100.00 – 2 250 125.00 150.00 3 410 136.67 160.00 4 560 140.00 150.00 5 700 140.00 140.00 6 830 138.33 130.00 7 945 135.00 115.00 8 1050 131.25 105.00 9 1146 127.33 96.00 10 1234 123.40 88.00 11 1314 119.45 80.00 12 1384 115.33 70.00 13 1444 111.08 60.00 14 1494 106.71 50.00 15 1534 102.27 40.00 16 1564 97.75 30.00 17 1584 93.18 20.00 18 1594 88.56 10.00
1. When MP is >, what is happening to:

1) MC

2)
AVC

1. When MC first begins to fall, does AVC begin to rise?
1. What is the relation between MC and AVC when MP = AP?
1. What is happening to AVC while AP is increasing?
1. Where is AVC when AP is at its maximum? What happens to
AVC after this point?
1. What happens to MC after the point where it equals AVC?

1)
How does it compare with AVC
thereafter?

2)
What is happening to MP thereafter?

3)
How does MP compare with AP
thereafter?

1. What happens to TFC as output is increased?
1. What happens to AFC as:

1)
MP increases?

2)
MC decreases?

3)
MP decreases?

4)
MC increases?

5)
AVC increases?

1. How long does AFC decrease?

J. What happens to
ATC as?

1)
MP increases

2)
MC decreases

3)
AP increases

4)
AVC decreases

K. Does ATC increase?

1)
As soon as the point of diminishing
marginal returns is passed?

2)
As soon as the point of diminishing
average returns is passed?

Below is hypothetical data for a manufacturer which possesses

PLACE THIS ORDER OR A SIMILAR ORDER WITH BEST NURSING TUTORS TODAY AND GET AN AMAZING DISCOUNT

The post What happens to MC after the point where it equals AVC? appeared first on BEST NURSING TUTORS .