Marginal cost is equal to average total cost when
A)average variable cost is falling.
B)average fixed cost is rising.
C)marginal cost is at its minimum.
D)average total cost is at its minimum.

Question

Quizplus · Accepted Answer

When marginal cost equals average total cost, it means that the cost of producing one more unit is exactly the same as the average cost of producing all units so far. This situation occurs at the minimum point of the average total cost curve, indicating that any additional unit produced will increase the average total cost.

Marginal Cost Is Equal to Average Total Cost When