is. If marginal cost is greater than average total cost then the cost of the product is greater than the average cost.
This is an important concept to know. If the cost of a product is greater than the average cost, then you are undercutting the cost by a lot. You are making the product cheaper, but the marginal cost is higher.
If the marginal cost is greater than the average cost then the product is overpricing it. If the marginal cost is greater than the average then the price is too low.
In theory, it should be like doing a stock trade. If the price is above the average then it should be doing a lot better than if it was below average.
In theory, the average price will always be below average. In practice, though, the average has to be less than the actual average cost. So if the cost of a product is just below its average then that’s a good thing. But if it’s above average then you’ve really screwed up.
It’s always more difficult to spot a bad deal when you’re dealing with a low price. And you never know if the price is a lot higher than the average, so it is definitely always a good idea to check the actual price.
A lot of times, the low price is the real deal. For example, lets say youre going to buy a piece of clothing that costs $10.00. If you compare the cost of the item to the average cost of the product, the average cost is the same. However, if the actual cost is $5.00, then the actual price is $5.00 and the average is $5.00.
So if you want a cheap item that will last a long time, and the average cost of the item is 5.00 (or the average cost of the item is 10.00), then the low price is going to be more expensive than the average cost.
Marginal cost is the cost of producing an item you don’t use, with a high unit cost. In this case, a cheap item will be cheaper than a high-cost item, but only if the unit cost is higher than the cost of producing it. So if we set a high unit cost of 10.00, then the low price would be 10.00. However, if the cost of producing the item is 5.00, then the price would be 5.00.
That’s why you can’t just charge five bucks for a plastic bag. You can charge the amount you want, but it will be less than the amount of the marginal cost. That’s because marginal cost is the amount of money you would have to spend on producing the item. So if you put five dollars into a plastic bag, it will not be worth 5.00 dollars. On the other hand, if you put 10 dollars into a plastic bag, then it will be worth 10.
