The marginal cost curve intersects the minimum of the curve representing

Question

Quizplus · Accepted Answer

The minimum point of the ATC curve represents the efficient scale of production, where the firm can produce at the lowest average cost per unit. At this point, the ATC curve is tangent to the MC curve. When the MC curve intersects the ATC curve at its minimum point, MC = ATC. Therefore, producing the output level where MC = ATC will minimize the cost per unit of production.

The Marginal Cost Curve Intersects the Minimum of the Curve