Question
When the marginal cost is equal to average cost, the slope of the average cost is :
The correct answer is
zero
\(\frac{dAC}{dQ}=\frac{MC-AC}{Q}\) For positive output, MC = AC makes this derivative zero. Hence the average-cost curve has zero slope.
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Important Questions from Microeconomics
- Match the following List-I with List-II :Choose the correct option :
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