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Answer to Question #36518 in Microeconomics for lasisi
Question #36518
if the AC of a firm is less than MC of any output, this means that?
a. thats a condition of perfect competition
b. AC decreases when their is increase in general production
c. AC increases with increase in production
d. MC is independent from total production
a. thats a condition of perfect competition
b. AC decreases when their is increase in general production
c. AC increases with increase in production
d. MC is independent from total production
Expert's answer
The right answer is d. MC is independent from total production, because MC should intersect AC in definite point, so there should be the segment, where AC>MC. So, if they don't intersect, MC is independent from total production.
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