Which of the following is not a property of a firm's cost curves?
A)Marginal cost must eventually rise as a result of diminishing marginal product.
B)Average total cost is U-shaped.
C)Economies of scale will exist when average total cost falls as output rises.
D)Average total cost will cross marginal cost at the minimum of marginal cost.

Question

Quizplus · Accepted Answer

This statement is incorrect. Average total cost will intersect with marginal cost at the minimum of average total cost, not the minimum of marginal cost.

Which of the Following Is Not a Property of a Firm's