At what level of output will average variable cost equal average total cost?
A)when marginal cost equals average total cost
B)for all levels of output in which average variable cost is falling
C)when marginal cost equals average variable cost
D)There is no level of output where this occurs, as long as fixed costs are positive.

Question

Quizplus · Accepted Answer

Average variable cost will never equal average total cost as long as there are positive fixed costs, because average total cost includes both variable and fixed costs.

At What Level of Output Will Average Variable Cost Equal