Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?
A)MC is everywhere above AVC
B)AVC is everywhere above MC
C)MC crosses AVC at AVC's minimum point
D)MC crosses AVC at MC's minimum point
E)both AVC and MC first rise and then fall

Question

Quizplus · Accepted Answer

The minimum point of AVC is where the marginal cost curve intersects the average variable cost curve. This is because at the minimum point, the additional cost of producing one more unit (MC) is equal to the average cost of producing each unit (AVC). So MC and AVC intersect at AVC's minimum point. Therefore, choice C is the correct answer.

Which of the Following Correctly Describes the Relationship Between the Marginal