Answered: In the short-run, if the marginal cost…

In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while its average variable cost is downward sloping, what can you say about slope of average total cost?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while its
average variable cost is downward sloping, what can you say about slope of average total cost?

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In the short run, if a marginal cost of a firm in a competitive industry is increasing while its average variable cost is upward sloping, what can you say about slope of average total cost?
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