Question

define the rules to be followed when drawing the relationship between AC and MC curves

Answer 1

When MC is less than AC, AC falls with increase in the output, i.e. till 3 units of output. 2. When MC is equal to AC, i.e. when MC and AC curves intersect each other at point A, AC is constant and at its minimum point. ... When MC is more than AC, AC rises with increase in output, i.e. from 5 units of output.