Question
- The marginal cost curve cuts the __________ curve at its lowest point. a. average variable cost b. average total cost c. average fixed cost d. a and b e. a, b, and c
The marginal cost curve cuts the __________ curve at its lowest point. a. average variable cost b. average total cost c. average fixed cost d. a and b e. a, b, and c The marginal cost curve cuts the __________ curve at its lowest point. average variable cost average total cost average fixed cost a and b a, b, and c a. average variable cost b. average total cost c. average fixed cost d. a and b e. a, b, and c
Explanation / Answer
option d) a and b => if MC if MC > ATC, then an increase in production by 1 unit will increase the ATC. So it follows that when MC = ATC, then the ATC is at its minimum Same reasoning for AVC