The total cost function is given by CCQ Using calculus show

The total cost function is given by C=C(Q). Using calculus, show that the slope of the average cost curve will be positive, zero, or negative if and only if the marginal cost curve lies above, intersects, or lies below the average cost curve.

Solution

A cost curve is a graph of the costs of production as a function of total quantity produced.

So, from this theory we can say that the slope of average costcurve will be positive only when the marginal cost

curve will lies above the cost curve and negative when the marginal cost curve is below the cost curve.And

it will be \"0\" when both the curve intersect each other.