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Wednesday, May 5, 2010

4.Shapes of Total curve

The shape of total depends on marginal curve.As we know that marginal is the slope of total.
Rising marginal curve implies total curve will be increasing at increasing rate.It will be tilting towards ‘x’ axis.
Falling marginal curve but above x axis implies that total curve will be increasing at diminishing rate.Total curve will be tilting toward ‘y’ axis.
Constant marginal curve implies that total curve will be increasing at constant rate.Total curve will be staraight line.
Marginal curve when falls below ‘x’ axis total will start falling down.