Question

explain the relationship between SMC and SAC with help diagram.​

Answer 1

Answer:

Relation between SMC and SAC:

Now, if the firm produces 10 units of output, then the resulting increase in its total cost would be its marginal cost (SMC) at q = 10 units. That is, what we have obtained here is that if SMC = SAC, when q increases, then the SAC would remain unchanged.