In the short run,the point at which average cost is minimized,the line from the origin to the point on the
A)total cost curve is tangent to the curve.
B)total cost curve has the largest slope.
C)total variable cost curve has the largest slope.
D)total variable cost curve has the smallest slope.

Question

Quizplus · Accepted Answer

The average cost curve is tangent to the total cost curve at the point of minimum average cost. This is because at the point of minimum average cost, the marginal cost (the slope of the total cost curve) is equal to the average cost. Therefore, the line from the origin to this point on the total cost curve is tangent to the curve. Option A describes this concept accurately. Options B, C, and D are incorrect because they focus on the slope of other curves (total cost, total variable cost) rather than the average cost curve.

In the Short Run,the Point at Which Average Cost Is