Ch 3 UNIT 2 - REVISION All Costs graphs Total Cost Average Cost Marginal Cost AVC AFC TC Economics

[@nandni_023]

•Short Run is also known as plant curve
•TC = FC +VC
•AFC shape rectangle hyperbola , AFC never 0
•ATC , AVC , MC are U Shape
•MC always cut Ac and AVC at their minimum point
•When AC is decreasing MC is also decreasing, MC is less than AC
•When AC is at minimum point , MC and AC are equal
•When AC is increasing MC is also increasing, but MC is greater than AC
•Long Run Average Cost Curve is also known as planning curve/envelop curve
•Average Total Cost minimum point = Optimum point
•Falling part of the long run average cost curve bcz of ECONOMICS OF SCALE
•Rising part of the long run average cost curve bcz of DISECONOMICS OF SCALE

[@UNICOMeducation]

Excellent 👍 a few corrections :-
It is not necessary that when AC is falling, MC should also always fall, it can fall / become minimum / increase .
2. It is Economies & Diseconomies of Scale.

[@Mahendrameena-wl4tn]

👍

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TR/Q = AVERAGE REVENUE

[@UNICOMeducation]

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