The minimum points of the average variable cost and average total cost curves occur where
A) the marginal cost curve lies below the average variable cost and average total cost curves.
B) the marginal cost curve intersects those curves.
C) the average variable cost and average total cost curves intersect.
D) the slope of total cost is the smallest.

Question

Quizplus · Accepted Answer

The minimum points of the average variable cost (AVC) and average total cost (ATC) curves occur where the marginal cost (MC) curve intersects them. This is because the MC curve represents the cost of producing one more unit, and when it equals the AVC or ATC, it indicates the lowest point of those curves.

The Minimum Points of the Average Variable Cost and Average