Marginal cost
A)equals both average variable cost and average total cost at their respective minimums.
B)is the difference between total cost and total variable cost.
C)rises for a time but then begins to decline when diminishing returns set in.
D)declines continuously as output increases.

Question

Quizplus · Accepted Answer

Marginal cost equals both average variable cost and average total cost at their respective minimum points because at these points, the addition of one more unit of production will start to increase the average costs, indicating the most efficient scale of production has been reached.

Marginal Cost