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United StatesMicroeconomicsQuick questions

Unit 3: Production, Cost, and the Perfect Competition Model

Quick questions on Short-Run Production Costs - AP Microeconomics Topic 3.2

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Define average fixed cost and state what happens to it as output rises. [2 points]
What is q2?
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Marginal cost is below average total cost at the current output. State whether average total cost is rising or falling. [1 point]

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