The output at which average variable cost is a minimum is ________ than the output at which ________ is a minimum.
A) the same as; average total cost
B) the same as; marginal cost
C) less than; average total cost
D) less than; marginal cost

Question

Quizplus · Accepted Answer

The output at which average variable cost (AVC) is minimized occurs before the output at which average total cost (ATC) is minimized because ATC includes both AVC and average fixed cost (AFC), and AFC decreases as output increases.

The Output at Which Average Variable Cost Is a Minimum