Which of the following is true in the short run at the output level where average total cost is at its minimum?
A)Marginal cost equals average total cost.
B)Average variable cost equals fixed cost.
C)Marginal cost equals average variable cost.
D)Average total cost equals average fixed cost.
E)Average total cost equals average variable cost.

Question

Quizplus · Accepted Answer

At the output level where average total cost is at its minimum, marginal cost equals average total cost. This is because the marginal cost curve intersects the average total cost curve at its lowest point.

Which of the Following Is True in the Short Run