If average cost is at a minimum, then
A) it is equal to marginal cost.
B) total cost is also at a minimum.
C) profit is at a maximum.
D) All of the above are true.

Question

Quizplus · Accepted Answer

When average cost is at a minimum, it intersects with marginal cost. This is a fundamental principle in economics, indicating the most efficient scale of production. Total cost being at a minimum and profit being at a maximum are not necessarily true at this point.

If Average Cost Is at a Minimum, Then