Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?
A)Marginal Cost is always above Average Variable Cost
B)Average Variable Cost is always above Marginal Cost
C)Marginal Cost crosses Average Variable Cost at Average Variable Cost's minimum point
D)Marginal Cost crosses Average Variable Cost at Marginal Cost's minimum point
E)both Average Variable Cost and Marginal Cost first rise and then fall

Question

Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?​
A)Marginal Cost is always above Average Variable Cost
B)Average Variable Cost is always above Marginal Cost​
C)Marginal Cost crosses Average Variable Cost at Average Variable Cost's minimum point
D)Marginal Cost crosses Average Variable Cost at Marginal Cost's minimum point
E)both Average Variable Cost and Marginal Cost first rise and then fall

Quizplus · Accepted Answer

The marginal cost curve intersects the average variable cost curve at the minimum point of the average variable cost curve. This is because when the marginal cost is below the average variable cost, the average variable cost curve falls, and when it is above, the curve rises. The intersection point is where the two curves intersect. Therefore, option C is the correct answer.

Which of the Following Correctly Describes the Relationship Between the Marginal