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Figure: Short-Run Costs II
-(Figure: Short-Run Costs II) Look at the figure Short-Run Costs II. Curve 1 crosses the average total cost curve at:
A) the minimum value of curve 2.
B) approximately 4.3 units of output.
C) approximately 2.8 units of output.
D) point A.

Question

Use the following to answer questions:
Figure: Short-Run Costs II 
-(Figure: Short-Run Costs II) Look at the figure Short-Run Costs II. Curve 1 crosses the average total cost curve at:
A) the minimum value of curve 2. 
B) approximately 4.3 units of output. 
C) approximately 2.8 units of output. 
D) point A.

Quizplus · Accepted Answer

Curve 1, which is the marginal cost curve, crosses the average total cost curve at its minimum point, which is the minimum value of curve 2 (the average total cost curve).

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