In general,if marginal cost is EQUAL to average total cost:
A)average total cost is increasing.
B)average total cost is at its maximum.
C)average total cost is at its minimum.
D)marginal cost is decreasing.

Question

Quizplus · Accepted Answer

When marginal cost is equal to average total cost, it means that producing one additional unit of output is costing the same as the average cost of all units produced so far. This indicates that the efficiency of production is at its highest point, resulting in the minimum possible average total cost. Therefore, the correct answer is C, average total cost is at its minimum.

In General,if Marginal Cost Is EQUAL to Average Total Cost