The ________ curve intersects the average variable cost curve at the minimum value of the average variable cost curve.
A) total cost
B) marginal cost
C) total variable cost
D) average fixed cost

Question

Quizplus · Accepted Answer

The marginal cost curve intersects the average variable cost curve at its minimum point because when marginal cost is below average variable cost, it pulls the average down, and when it is above, it pulls the average up. Thus, the intersection point marks the minimum of the average variable cost curve.

The ________ Curve Intersects the Average Variable Cost Curve at the Minimum