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Lecture 4 – Costs.pdfWhiteboard, 12 OctRecording – Giulia Production and costs
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Marginal cost is the extra cost of producing one more unit. When it is below average cost it pulls the average down; when it is above, it pulls the average up. That is why the two curves meet exactly where average cost is lowest.
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Slides: MC crosses AC at its minimum. Giulia's notes: at its maximum. The slides are right; check with the professor if unsure.