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
1
Expert's answer
2013-10-30T12:25:40-0400
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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