TOTAL cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing ONE more units of output. ECONOMIES of scale are said to exist if an additional unit of output can be produced for less than the average of all previous units that is, if long-run marginal cost is below long-run average cost, so the LATTER is falling. Conversely, there may be levels of production where marginal cost is HIGHER than average cost, and average cost is an increasing function of output.

"> TOTAL cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing ONE more units of output. ECONOMIES of scale are said to exist if an additional unit of output can be produced for less than the average of all previous units that is, if long-run marginal cost is below long-run average cost, so the LATTER is falling. Conversely, there may be levels of production where marginal cost is HIGHER than average cost, and average cost is an increasing function of output.

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When average cost production (AC) falls, marginal cost of production must be.

Economics Economics miscellaneous in Economics 4 months ago

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Average cost is the TOTAL cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing ONE more units of output. ECONOMIES of scale are said to exist if an additional unit of output can be produced for less than the average of all previous units that is, if long-run marginal cost is below long-run average cost, so the LATTER is falling. Conversely, there may be levels of production where marginal cost is HIGHER than average cost, and average cost is an increasing function of output.

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Posted on 06 Jun 2025, this text provides information on Economics related to Economics miscellaneous in Economics. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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