Which statement is true?
A)The marginal cost curve intersects both the average variable cost curve and the average total cost curve at their minimum points.
B)The marginal cost curve intersects neither the average variable cost curve nor the average total cost curve at their minimum points.
C)The marginal cost curve intersects the average variable cost curve at its minimum point,but it does not intersect the average total cost curve at its minimum point.
D)The marginal cost curve intersects the average total cost curve at its minimum point,but it does not intersect the average variable cost curve at its minimum point.

Question

Quizplus · Accepted Answer

The statement that marginal cost curve intersects both the average variable cost curve and the average total cost curve at their minimum points is true. This is because the marginal cost represents the additional cost of producing one more unit of output, and when it intersects the average cost curve at its minimum point, it means that the cost of producing the next unit is equal to the average cost of all units produced so far, which indicates that the firm is producing efficiently.

Which Statement Is True