- Created by: Frances
- Created on: 28-05-13 09:32
- This occurs at the bottom of the average cost curve
- Depends on reaping all available economies of scale.
- Occurs at the minimum point on the AC curve
- Occurs when a firm produces a range of goods using scarce resources in such a way as to meet the demands of customers.
- Firms will charge a price equal to the marginal cost of manufacturing the good.
- Price = MC
- This is when any given output is produced with…