Problem
1. Describe the average total cost curve, the average variable cost curve, and the average fixed cost curve -- how do they look on a graph, what can you say about their slopes, and how do they relate to each other?
3. a. When marginal cost is lower than average variable cost, what is happening to average variable cost? When marginal cost is above average variable cost, what is happening to average variable cost? (Hint: look at the various cost curves.)
b. Why are the relationships you described in part a. true?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.