Average total cost is minimized at the quantity where:
A) ATC = MC.
B) AVC = MC.
C) AVC = TC.
D) AFC = MC.

Question

Quizplus · Accepted Answer

Average total cost (ATC) is minimized at the quantity where the marginal cost (MC) curve intersects the ATC curve from below. This is because the MC curve reflects the cost of producing one more unit, and when it equals the ATC, it indicates that producing additional units will start to increase the average cost.

Average Total Cost Is Minimized at the Quantity Where