If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then
A)its marginal costs are falling.
B)average total cost is at its maximum.
C)average total costs are rising.
D)demand is elastic.
E)average total cost is at its lowest level.

Question

Quizplus · Accepted Answer

If the average total cost and the marginal cost are both equal to $85, then the cost curve is at its lowest point, indicating the minimum point on the average total cost curve. Therefore, the correct answer is E.

If Roberts Electronics Finds That the Average Total Cost of Its