Marginal cost is equal to average variable cost when average variable cost is
A) zero.
B) at its minimum.
C) at its maximum.
D) equal to total variable cost.

Question

Quizplus · Accepted Answer

Marginal cost equals average variable cost at the point where average variable cost is at its minimum. This is because the marginal cost curve intersects the average variable cost curve at its lowest point, indicating the least cost of producing an additional unit.

Marginal Cost Is Equal to Average Variable Cost When Average