At the point where marginal cost equals average total cost, average total cost will be
A) at its maximum.
B) decreasing.
C) increasing.
D) at its minimum.

Question

Quizplus · Accepted Answer

When marginal cost equals average total cost, average total cost is at its minimum. This is because the marginal cost curve intersects the average total cost curve at its lowest point, indicating the most efficient scale of production.

At the Point Where Marginal Cost Equals Average Total Cost