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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost1 Mark
Question
State the relation between MC, AVC and ATC.
✓

Answer

The relationship between MC, AVC and ATC is as follows: MC affects AC, (whether AVC or ATC)
  1. If MC is lower than AC, then AC falls.
  2. If MC is equal to AC, then AC is constant and minimum.
  3. If MC is greater than AC, then AC rises.

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