The Average Total Cost Curve Is U-Shaped

question 354

Essay

The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve, or intersecting the average total cost curve?

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Definitions:

Cylindricity

A form tolerance that defines how much a cylindrical feature's actual profile may deviate from a perfect cylinder.

Total Runout

Total runout is a tolerance that controls the total variation a surface can have when it is rotated around an axis or datum.

Datum Axis

An imaginary line defined by the geometric center or specified points of a feature, used as a reference or starting point for measurements and geometric definitions.

Checking Indicator

A precision measurement tool used to assess the conformity of parts to specified tolerances or dimensions, often in machining processes.