The figure given below shows cost curves of a firm.Figure: 8.2
In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
-Refer to Figure 8.2. When Average Variable Cost (AVC) is at a minimum, which of the following is true?
A)AVC equals AB
B)Marginal cost (M
C) equals 0G
C)Average total cost exceeds AVC by SR
D)MC equals HN
E)MC equals GJ

Question

The figure given below shows cost curves of a firm.Figure: 8.2
  In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
-Refer to Figure 8.2. When Average Variable Cost (AVC) is at a minimum, which of the following is true?
A)AVC equals AB 
B)Marginal cost (M
C) equals 0G 
C)Average total cost exceeds AVC by SR 
D)MC equals HN 
E)MC equals GJ

Quizplus · Accepted Answer

When Average Variable Cost (AVC) is at a minimum, the Marginal Cost (MC) curve intersects the AVC curve at its lowest point. This is a fundamental principle of microeconomics, indicating that at the point where AVC is minimized, MC equals AVC.

The Figure Given Below Shows Cost Curves of a Firm