The marginal cost curve crosses
A) only the average variable cost curve at its bottom.
B) both the average cost curve and the average variable cost curve at their bottoms.
C) only the average cost curve at its bottom.
D) the marginal product curve at its maximum.

Question

Quizplus · Accepted Answer

The marginal cost curve intersects both the average cost curve and the average variable cost curve at their respective bottoms. This is because the marginal cost is equal to the change in total cost divided by the change in quantity, and at the minimum point of both average cost and average variable cost, the change in quantity is matched by a minimal change in total cost. Therefore, the marginal cost intersects these curves at their lowest points. The marginal product curve is not always related to the marginal cost curve and may intersect at other points.

The Marginal Cost Curve Crosses