Question from Past Microeconomics Qualifying ExamEdit
Fall 1999- Section I, Question two, George Mason University
True, False, Uncertain. Determine whether or not each of the following statements are true or false. Explain your reasoning briefly in a paragraph or two. (The explanation is often more important than the answer given). Include a carefully labeled diagram or game matrix if it helps to clarify your answer.
Cost curves are “monetized” reciprocals of product curves.
*MC = dTVC/dQ = wdL/dQ = w(1/MPL)
- MC is the monetized mirror image or reciprocal of the MPL curve
* AVC = TVC/Q = wL/Q = w(1/APL)
- AVC is the monetized mirror image or reciprocal of the APL curve