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How rising portion of marginal cost …

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How rising portion of marginal cost curve over and above minimum average variable cost curve in supply curve ?????

Posted by Chetna Shukla 7 years, 10 months ago

CBSE > Class 12 > Economics

4 answers

Dhairya Gupta 7 years, 10 months ago

I can give you only rough idea suppose we are talking about a firm in perfect competition so to survive in short run it must cover it AVC so the firm will supply at that level where MR touches touches Mc and AVC ie at equilibrium output(MR =MC). Now suppose MR increases AVC and Mc remaining same. Now the producer will again supply at that level where (Mc=MR) and this process will continue forming a supply curve.

Dhairya Gupta 7 years, 10 months ago

Sorry the question was correct

Dhairya Gupta 7 years, 10 months ago

And it not marginal cost it's marginal revenue curve

Dhairya Gupta 7 years, 10 months ago

This question can be explained only through diagram so u can refer sanjeev garg (power booster) or exam idea

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