Suppose that Good A yields 500 utils while Good B yields only 50 utils. You have sufficient income to purchase the first unit of either. Firm A is producing 1,000 units of output. MES is 1,000 units 3. A firm has been lowering its price over the past several weeks and total revenue has been steadily rising.
Price elasticity is probably positive.
Price elasticity is probably equal to one. Price elasticity is probably rising. Complete the table. Explain the derivation and shape of each of these four curves and their relationships which they bear to one another. Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and ATC curves at their minimum points.