Which of the following is true of cost curves?
A) The ATC curve goes through the minimum of the MC curve.
B) The AVC curve goes through the minimum of the MC curve.
C) The MC curve goes through the minimum of the ATC curve, to the left of the minimum of the AVC curve.
D) The MC curve goes through the minimum of the AVC curve, to the right of the minimum of the ATC curve.
E) The MC curve goes through the minimum of both the AVC curve and the ATC curve.

Question

Quizplus · Accepted Answer

The MC (Marginal Cost) curve intersects both the AVC (Average Variable Cost) curve and the ATC (Average Total Cost) curve at their minimum points. This is because when MC is less than either AVC or ATC, it pulls them down, and when MC is more than AVC or ATC, it pushes them up, indicating that the minimum point of AVC and ATC occurs where MC equals AVC and ATC.

Which of the Following Is True of Cost Curves