Chapter 21  How Cost of Production Affects Supply

Class Discussion Questions

  

 

1. Draw average and marginal product of labor curves on graph A. Draw average variable cost and marginal cost curves on graph B.
    In each case explain how the location, direction, and rate of change of the marginal curves depict the shape of the average curves. 
    Note that the two graphs are mirror images of each other.

A.

B.

 

 

 

 

 

 

 

 

 

 

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