Eyeglass Factory Currently, Average Cost Of Production In A Factory Producing Eyeglass Frames Is At The Minimum Possible Level?
Currently, average cost of production in a factory producing eyeglass frames is at the minimum possible level? - eyeglass factory
Which of the following statements is correct?
(a) The marginal cost of production is minimal at the current level of production.
(b) The marginal cost equal to the average cost of production at current levels of production.
(c) the average cost is set to at least the current level of production.
(d) the average variable cost is higher than the average cost of production at current production levels.
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1 comments:
If you are unsure, start eliminating those who know they are wrong:
i) CA stroke can not be negative, unless the fixed costs (not true) not (d)
ii) the AFC is getting smaller, they produce - a service, the unit produces, is smaller and therefore can not at the minimum, so that no (c)
iii) It is undisputed that the marginal cost of production will increase, but not necessarily the case in all cases, so that (a) is unlikely
It is certain that at MC \\ \\ \\ \\ \\ \\ \\ \\ u0026lt, AC, AC is, and when MC> AC, AC is increasing. When MC = AC, AC is always a minimum or maximum, so here's the answer (b)
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