Marginal cost must cross average variable cost at its minimum.

Question

Quizplus · Accepted Answer

This statement is true. The minimum point of the average variable cost curve represents the point at which the marginal cost curve intersects it. This is because, at that point, any additional unit of production will cost exactly the same as the average cost of producing all the previous units. Consequently, the marginal cost curve must cross the average variable cost curve at its minimum.

Marginal Cost Must Cross Average Variable Cost at Its Minimum