AP (Advanced Placement) Macroeconomics Fundamentals of Economics-Opportunity Cost Study Material (Page 2 of 8)

Choose Programs:

📹 Video Course 2024 (33 Lectures [13 hrs : 48 mins]): Offline Support

Rs. 100.00 -OR-

1 Month Validity (Multiple Devices)

Preview All LecturesDetails

🎓 Study Material (230 Notes): 2024-2025 Syllabus

Rs. 400.00 -OR-

3 Year Validity (Multiple Devices)

Topic-wise Notes & SampleDetails

🎯 71 MCQs (& PYQs) with Full Explanations (2024-2025 Exam)

Rs. 100.00 -OR-

3 Year Validity (Multiple Devices)

CoverageDetailsSample Explanation

Help me Choose & Register (Watch Video) Already Subscribed?

Relationship between MC and ATC

Edit

The MC curves cuts the ATC and AVC at their minimum points.

When MC lies below AC curve, AC falls and when MC lies above AC curve, AC rises.

  1. If slope of then
  2. If slope of then
  3. If slope of then

Hence, at the minimum point of the average cost curve.

Average total cost can be very handy for firms to compare efficiency at different output or when adjusting different f…

… (123 more words) …

Subscribe (by clicking here) to view full notes and track progress.

Long Run Costs

Edit
  • Long run average cost depicts the least possible average cost for producing all possible levels of output.
  • The Long Run average cost is the focus of points denoting the least cost of producing the corresponding output.
  • The LAC is a planning curve because on the basis of this curve the firm decides what plant to set up in order to produce optimally the expect…

… (65 more words, 2 figures) …

Subscribe (by clicking here) to view full notes and track progress.