The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-The marginal cost curve intersects the average total cost curve at the firm's most efficient point of production.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-The marginal cost curve intersects the average total cost curve at the firm's most efficient point of production.

Quizplus · Accepted Answer

The statement is true. The point where the marginal cost curve intersects the average total cost curve is the point where the firm is producing at the minimum average total cost. This is the point of efficiency for the firm, and any deviation from this point would result in a higher cost of production.

The Figure Given Below Shows Three Short Run Average Total