Question

(2) Explain with diagram the inter-relationship between average cost and marginal cost ​

Answer 1

Answer:

It should be noted that average and marginal costs are related together. This relationship should be carefully understood.

When the average cost is falling, the marginal cost is less than the average cost and when average cost is rising, the marginal cost is higher than the average cost.

But if marginal cost neither goes up nor comes down, the average and marginal costs are equal.

Explanation:

hope it helps

Answer 2

Answer:

Diagram of average cost and marginal cost