Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that:
A)fixed costs are zero.
B)average fixed costs are increasing.
C)average total cost will decrease if production is increased.
D)average total cost is minimized at the current level of output.

Question

Quizplus · Accepted Answer

When average total cost equals marginal cost, it indicates that average total cost is at its minimum point. This is because marginal cost intersects average total cost at its lowest point.

Suppose You Know That at the Current Level of Production