If marginal cost equals average variable cost, average variable cost will
A) be maximized.
B) decrease.
C) increase.
D) be minimized.

Name: If marginal cost equals average variable cost, average variable cost will A) be maximized. B) decrease. C) increase. D) be minimized.
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Question

Quizplus · Accepted Answer

When marginal cost equals average variable cost, it indicates that average variable cost is at its minimum point. This is because the marginal cost curve intersects the average variable cost curve at its lowest point.

If Marginal Cost Equals Average Variable Cost, Average Variable Cost