 In production analysis under the financial constraints, now we are going to study the relationship between marginal cost and the average cost. First coming to the point that why we require to have analysis of this type of the relationship. As we know that in the production function, we have already studied that there is the particular relationship between marginal product and the average product. So when we have to assess the performance of any firm related to its production, we want to have a break even point and we want to check that where is the marginal product and the average product of that firm. And when that output is just multiplied by the output price, it provides us the insight into the marginal revenue and the average revenue. So again, marginal revenue and average revenue, it provides us some aspects of the business where the revenue we have to assess its break even point. In the same manner when we have studied the Euler theorem, we have come to know that if we have to check the profit of an entrepreneur, it is possible that we can assess that performance or the profit of the entrepreneur either by utilizing the output or the production or we can have the marginal productivities of the input and then utilizing the cost functions, we can also assess the profit of the entrepreneur. So the assessment or the analysis of the cost curve, it provides us a similar manner, a second approach to have all types of the decision that are very much required for a production process. Now coming to this way, in this diagram, we see that here we are having average variable cost and we are having this average total cost and then we are having the marginal cost curve and then there are the two points which shows that at one point, marginal cost curve is just equal to the average total cost curve and the second point is when marginal cost curve is equal to the average total cost curve. These two points in some graphs, they may be very, very close to each other that even they will not be shown by a great spacing. But in certain large aspects, we can see that still there is a certain difference. So we have shown here through the shaded areas that this type, this green shaded area and then the yellow shaded area. So this green and the yellow shaded area shown by area A and area B and then there is a one part that is called area C. So we have to decide that intersection of these two points, what message it provides to the entrepreneur and the policymaking. So at point B, we see that the average total cost is at its lowest. So here we can see that if there is intersection of marginal cost and average total cost, at this point, average total cost curve is its lowest. And in the similar manner, when we see that when the marginal cost has intersected average variable cost at point A, at this point, average variable cost was at its lowest point. So in this graph, we can see that the position of marginal cost relative to the average total cost tell either average total cost is rising or the falling. Definitely from the graph, we can see that if it is upward rising, we can see that it is increasing. And somewhat if it is downward, we can say that it is declining. But compared to the cost functions, we want to assess that in this graph, when the area C that shows the output after the Q1, that is the average total cost is rising and the marginal cost curve is above the total cost curve. So this part of the area C, it will be shown in the marginal productivity range when the marginal product will be less than the zero or the negative form. So these three areas when we see in the new classical production function, they reciprocate to the three stages of the production function. And these two stages A and the B, they entail for the producer the stages when the output will be increasing and when output multiplied by the output price, it shows the revenue. So revenue will be increasing. Now coming to the cost curve, we see that when marginal cost curve, it is greater than the average total cost curve than the average total cost curve is rising. And when marginal cost curve is equal to average total cost, then average total cost is at its lowest point. And likewise, when marginal cost curve, we see at this point that when they both intersect each other at this point, the marginal cost curve will be equal to average total cost. And when this intersect, this will give the marginal cost will be equal to the average variable. Thank you.