Minimizing average total cost always leads to the maximization of total profit.

Name: Minimizing average total cost always leads to the maximization of total profit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Minimizing average total cost does not always lead to the maximization of total profit because total profit also depends on the total revenue, which is a function of price and quantity sold. Profit maximization occurs when marginal cost equals marginal revenue, not necessarily when average total cost is minimized.

Minimizing Average Total Cost Always Leads to the Maximization of Total