Question

Q . Derive the relationship between MC and AC using the product rule of differentiation.

Answer 1

Answer:

hey! the full form of mc was Marginal cost

full form of ac was average cost.

Explanation:

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Answer 2

In this question, we need to describe the relationship between MC and AC.

• MC stands for Marginal Cost and AC stands for Average Cost.
• Both Marginal Cost and Average Cost are derived from the total cost.
• Both state the unique relationship.
• When AC falls with an increase in output, MC is lower than AC, i.e., the MC curve lies below the AC curve. However, it is not necessary that MC should fall throughout this stage. Actually, MC rises earlier than AC.
• When AC rises with an increase in output, MC is higher than AC, i.e. the MC curve lies above the AC curve.

PROJECT CODE #SPJ3