Clutch Prep is now a part of Pearson
Ch. 10 - The Costs of ProductionWorksheetSee all chapters

# The Relationship Between Average Cost and Marginal Cost

See all sections
Sections
Revenue, Cost, and Profit
The Production Function and Diminishing Returns
Marginal Cost
The Relationship Between Average Cost and Marginal Cost
Graphing Costs
Average Total Cost: Short Run and Long Run
Isoquant Lines
Isocost Lines
Cost-Minimizing Combination of Labor and Capital
###### If marginal cost is above average cost, it will drive the average cost up. If marginal cost is below average cost, it will drive the average cost down.

Concept #1: Average Cost and Marginal Cost

###### Expert Q&A

Ask unlimited questions and get expert help right away.

Concept #2: Patterns of MC, AFC, AVC, and ATC curves

###### Expert Q&A

Ask unlimited questions and get expert help right away.

Practice: A firm is currently producing 100 units with an average total cost of $44 and a marginal cost of$32. If it were to increase production to 101 units, which of the following must be true?

Practice: The government imposes a $10,000 per year inspection fee on all restaurants. Which cost curves are affected? Practice: A firm is producing 1,500 units at a total cost of$15,000. If it were to increase production to 1,501 units, its total cost would rise to \$15,012. Which of the following is true?

###### Expert Q&A

Ask unlimited questions and get expert help right away.