Use the following to answer question:
-(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average total cost curve at:
A)the minimum value of curve 2.
B)approximately 4.3 units of output.
C)approximately 2.8 units of output.
D)point A.

Question

Use the following to answer question: 
-(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average total cost curve at:
A)the minimum value of curve 2. 
B)approximately 4.3 units of output. 
C)approximately 2.8 units of output. 
D)point A.

Quizplus · Accepted Answer

The marginal cost curve (curve 1) intersects the average total cost curve (curve 2) at its minimum point, which is a fundamental concept in cost theory.

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