-Refer to Table 5.1. Marginal cost (MC) is equal to average total cost (ATC)
A) between 1 and 2 units of output.
B) between 6 and 7 units of output.
C) between 7 and 8 units of output.
D) between 9 and 10 units of output.
E) at 3 units of output.

Question

-Refer to Table 5.1. Marginal cost (MC) is equal to average total cost (ATC)
A) between 1 and 2 units of output. 
B) between 6 and 7 units of output. 
C) between 7 and 8 units of output. 
D) between 9 and 10 units of output. 
E) at 3 units of output.

Quizplus · Accepted Answer

Marginal cost equals average total cost at the point where ATC is at its minimum. This typically occurs when MC intersects ATC, which is between 7 and 8 units of output.