Price changes Flashcards
(12 cards)
when fixed costs decrease, what happens to AFC?
it decreases
when variable costs decrease, what happens to AFC?
no change
when fixed costs increase, what happens to AFC?
it increases
when fixed costs decrease, what happens to AVC?
no change
when variable costs decrease, what happens to AVC?
it decreases
when fixed costs increase, what happens to AVC?
no change
when fixed costs decrease, what happens to ATC?
they decrease
when variable costs decrease, what happens to ATC?
they decrease
when fixed costs increase, what happens to ATC?
they increase
when variable costs decrease, what happens to MC
no change
when fixed costs increase, what happens to MC?
no change
which statement applies when marginal cost equals average total cost?
average total cost is at its minimum
