Page 1 - HA-COST

SAI INTERNATIONAL SCHOOL

ECONOMICS

Class-XI

[MICRO ECONOMICS]

CHAPTER -6

COST

(Module-42)

TOPIC-
 -relationship between AC and MC

 --relationship between AVC & MC
 -relationship between AC, AVC & MC
 -relationship between AC & AVC

 -relationship between TC & MC

 -relationship between TVC & MC

SHORT NOTES

1. AC and MC

1) When MC is less than AC, AC falls with increase in the output, i.e. till 3 units of
output.
2) When MC is equal to AC, i.e. when MC and AC curves intersect each other at point
A, AC is constant and its minimum point.
3) When MC is more than AC rises with increase in output, i.e. from 5 units of output.