When marginal cost is equal to average cost the slope is
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Usually, in the marginal cost includes all of the costs.
This cost sometimes is not related to the fixed costs.
Whereas, the average cost is not at all related to the fixed costs of the products.
A certain amount of output generally divided by the number of units or the cost per unit which has normally been produced is the average cost of the product.
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When marginal cost is equal to the average cost the slope is at zero.
Explanation:
- When the ‘marginal cost’ is equal to average cost than the point at which they intersect each other is also the minimum of the AC curve.
- This means that the cost of the marginal output is equal to the ‘average cost’ of the output, then the average cost remains constant and it neither falls nor rises since it has reached its minimum level.
Learn more about marginal cost
Which is the concept of marginal cost closely related
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Supply curve is the rising portion of marginal cost curve over and above the minimum of average variable cost curve. Do you agree? Support your answer with valid reason.
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