If the average total cost and marginal cost are equal at a value of $30 and a quantity of 20,000, then the total cost increases with the production of one more unit.

Question

Quizplus · Accepted Answer

When average total cost equals marginal cost, the average total cost is at its minimum. Producing one more unit will increase the total cost because marginal cost represents the cost of producing an additional unit.

If the Average Total Cost and Marginal Cost Are Equal