The marginal cost curve crosses average variable cost at the bottom of the average cost U.

Question

Quizplus · Accepted Answer

This statement is true. The point where the marginal cost curve intersects the average variable cost curve is known as the minimum point of the average variable cost curve, or the bottom of the U-shaped average cost curve. This is where the average cost is at its lowest and the firm is producing at its most efficient level.

The Marginal Cost Curve Crosses Average Variable Cost at the Bottom