The marginal cost curve intersects the average total cost curve (ATC)
A)at the ATC's minimum point
B)only when the ATC is sloping upward
C)at the ATC's maximum point
D)only when the ATC is sloping downward
E)when the ATC intersects the fixed cost curve

Question

Quizplus · Accepted Answer

The marginal cost curve intersects the average total cost curve (ATC) at the point where the ATC is at its minimum. This occurs because at the minimum of the ATC, the marginal cost curve is equal to the ATC and any point to the left or right of that minimum point would result in a higher ATC. Therefore, the intersection of the two curves occurs at the point where the ATC is minimized.

The Marginal Cost Curve Intersects the Average Total Cost Curve