Average total cost equals marginal cost when
A)MC is declining.
B)AFC is increasing.
C)ATC is at its lowest point.
D)MC is at its lowest point.
E)ATC is zero.

Question

Quizplus · Accepted Answer

Average total cost (ATC) equals marginal cost (MC) at the point where ATC is at its lowest. This is because the ATC curve is U-shaped, and the MC curve intersects the ATC curve at its minimum point.

Average Total Cost Equals Marginal Cost When