The Marginal Cost curve will
A)cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC.
B)cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC.
C)cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC.
D)cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC.
E)cut both ATC and AVC at their respective minimums

Question

Quizplus · Accepted Answer

The Marginal Cost (MC) curve intersects both the Average Total Cost (ATC) and Average Variable Cost (AVC) curves at their respective minimum points. This is because when MC is less than ATC or AVC, it pulls them down, and when MC is greater, it pushes them up. Thus, the intersection occurs at the minimum points.

The Marginal Cost Curve Will