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8 Cards in this Set
- Front
- Back
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What happens eventually to marginal cost? |
It rises with the quantity of output. |
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Where does the marginal cost curve cross the ATC curve? What shape is MC? |
MC is a diagonal line. It crosses ATC at the minimum of ATC. |
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Where is efficient scale? |
At the bottom of ATC. |
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What is the equation for marginal cost? |
Change in TC over change in Q. |
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When does economies of scale apply? |
In the long run. |
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What does it mean if there are economies of scale? |
ATC falls as Q increases. |
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What does it mean if there are diseconomies of scale. |
ATC rises as Q increases. |
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What does it mean if there are constant returns to scale? |
ATC stays the same as Q increases. (middle/bottom of the curve) |
