If marginal cost is above average cost then average cost is

If marginal cost is above average cost, then average cost is:

at its minimum

at its maximum

falling

rising
Which is a source of market power?

Controlling significant factors of production.

Taking advantage of economies of scale.

Taking advantage of government patents.

All the above generate market power.

ppose output = 100 units, fixed cost = $300, total cost = $800, and marginal cost = $60. What is the firm’s total variable cost?

$360

$500

$1,100

$6,000

1) rising

When AC is falling then MC falls more than AC. When AC is rising then MC rises more than AC. AC and MC meets at minimum of AC.

2) All the above generate market power.

Government regulation through copyright, patents, control over resources market power.

3) Total variable cost = Total cost - Fixed cost = 800 - 300 = $ 500