The table given below shows the average total cost of production of a firm at different levels of the output. Table 7.5

-Refer to Table 7.5.At what level of production will the average total cost curve intersect the marginal cost curve?
A)3 units
B)2 units
C)zero units
D)5 units
E)4 units

Question

The table given below shows the average total cost of production of a firm at different levels of the output. Table 7.5
 
-Refer to Table 7.5.At what level of production will the average total cost curve intersect the marginal cost curve?
A)3 units 
B)2 units 
C)zero units 
D)5 units 
E)4 units

Quizplus · Accepted Answer

The average total cost curve intersects the marginal cost curve at the level of production where the average total cost is at its minimum. This typically occurs when the marginal cost equals the average total cost, which is given as 4 units in this context.

The Table Given Below Shows the Average Total Cost of Production