The marginal cost curve intersects the average variable cost curve at:
A)its lowest point.
B)its maximum.
C)its end point.
D)no point;the curves don't intersect.

Question

Quizplus · Accepted Answer

The marginal cost curve intersects the average variable cost curve at its lowest point because the point where the marginal cost curve crosses the average variable cost curve is where the additional cost of producing one more unit is equal to the average cost of producing each unit, which is minimized at the lowest point of the average variable cost curve.

The Marginal Cost Curve Intersects the Average Variable Cost Curve