If the average-total-cost of producing five units is $10, and the marginal-cost of producing the fifth unit is $10, then the average-total-cost curve is at its minimum at five units.

Question

If the average-total-cost of producing five units is $10, and the marginal-cost of producing the fifth unit is $10, then the average-total-cost curve is at its minimum at five units.​

Quizplus · Accepted Answer

When the marginal cost equals the average total cost, the average total cost is at its minimum. This is because the marginal cost curve intersects the average total cost curve at its lowest point.

If the Average-Total-Cost of Producing Five Units Is $10, and the Marginal-Cost