When the average variable cost curve is at its minimum point, average product will be:
A) at its maximum.
B) increasing.
C) decreasing.
D) at its minimum.

Question

Quizplus · Accepted Answer

When the average variable cost (AVC) is at its minimum, the average product (AP) is at its maximum because the AVC is inversely related to AP. As AP increases, AVC decreases, reaching its minimum when AP is at its peak.

When the Average Variable Cost Curve Is at Its Minimum