The diagram shows the daily average cost curve for a DVDproducer.
The Diagram Shows The Daily Average Cost Curve For A Dvd Producer 1 Explain What Happens To Total Cost At Output Levels 1 (39.4 KiB) Viewed 11 times
1.Explain what happens to total cost at output levels greaterthan Z.
A. Total cost decreases at an increasing rate
B. Total costs continue to rise but more steeply
C. MC < AC, therefore AC rises
D. MC < AC, therefore TC increases at a faster rate
2. At output levels greater than Z, which one of thefollowing correctly identifies what will happen to the cost?
The Diagram Shows The Daily Average Cost Curve For A Dvd Producer 1 Explain What Happens To Total Cost At Output Levels 2 (31.01 KiB) Viewed 11 times
Costs (£) N Average Cost Output
Average fixed cost A Falls B Falls C Rises D Rises Average variable cost Falls Rises Rises Rises Marginal cost Rises Rises Falls Rises
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