The marginal cost curve intersects the minimum of the curve representing
A) TC.
B) ATC.
C) AFC.
D) MPP.

Question

Quizplus · Accepted Answer

The minimum point of the ATC curve represents the most efficient level of production because it indicates the lowest possible average cost per unit of output. The intersection of the marginal cost curve with the ATC curve at its minimum point represents the point of efficient production where the marginal cost is equal to the average cost. Therefore, the best choice is B.

The Marginal Cost Curve Intersects the Minimum of the Curve