At the quantity of output where average cost has reached its minimum level:
A)average variable cost will equal marginal cost.
B)profit must be at its maximum level.
C)marginal cost will equal marginal profit.
D)marginal cost will equal average cost.
E)marginal cost will equal fixed cost.

Question

Quizplus · Accepted Answer

At the quantity of output where average cost has reached its minimum level, marginal cost will be equal to average cost. This is because average cost is calculated by dividing total cost by the quantity of output, and at the minimum point of the average cost curve, marginal cost is equal to average cost (since any increase or decrease in output will increase average cost). Marginal profit is not directly related to the minimum point of the average cost curve, and fixed cost is not relevant to this concept. While profit may be at its maximum level at this output level, it is not guaranteed.

At the Quantity of Output Where Average Cost Has Reached