Minimum average total cost


Suppose that when 100 units of output are produced, the MC of the 101st unit is $2. This is equal to the minimum average total cost, and MC is rising. If the optimal output level is 150 units (in the short run), at that level:

a) MC>$2 and MC

b) MC>$2 and MC>ATC

c) MC=$2 and MC=ATC

d) MC=$2 and MC>ATC

e) MP<$2 and MC>ATC

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Macroeconomics: Minimum average total cost
Reference No:- TGS070006

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