Timeline for Why does average variable cost = marginal cost for this function?
Current License: CC BY-SA 4.0
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| Nov 3, 2019 at 17:25 | comment | added | Brennan | Basically, given the functional form for the total cost function, you can see that neither of the above depend on $Q$. The marginal cost is constant and does not vary at different points. You can think of it in terms of the graph, if you were to plot your total cost function it would be an upward sloping line starting at 50 with a slope of 12. And if marginal cost is the derivative then it is the slope, which does not change. Same thing for average variable cost, it does not vary with $Q$. And this makes sense as the variable cost is $\$12$ per unit of $Q$, which does not change. | |
| Nov 3, 2019 at 10:19 | comment | added | Andrew Andreas | From the maths I can see it works but could you explain the intuition behind it please? | |
| Nov 3, 2019 at 10:18 | vote | accept | Andrew Andreas | ||
| Nov 2, 2019 at 22:23 | history | answered | Brennan | CC BY-SA 4.0 |