Which of the following is true at the quantity of output where average cost (AC)has reached its minimum level?
A)AVC = FC
B)MC = AVC
C)MC = AC
D)AC = AFC
E)P = AVC

Question

Quizplus · Accepted Answer

At the quantity of output where AC has reached its minimum level, MC intersects AC from below. This means that MC is equal to AC at that level of output. Therefore, choice C is the correct answer. Choices A, B, D, and E do not necessarily have to be true at the quantity of output where AC is at its minimum level.

Which of the Following Is True at the Quantity of Output