If the average cost curve is U-shaped, then the marginal cost curve must cross the average cost curve at the bottom of the U.

Question

Quizplus · Accepted Answer

This statement is true according to the concept of the U-shaped average cost curve. At the bottom of the U-shaped average cost curve, the curve is at its minimum point, which means that the marginal cost curve intersects with the average cost curve at that same point.

If the Average Cost Curve Is U-Shaped, Then the Marginal