The minimum point of the average variable cost curve is reached at the output level where:
A) marginal product is maximized.
B) neither marginal nor average product is maximized.
C) average product is maximized.
D) average and marginal products are maximized.

Question

Quizplus · Accepted Answer

The minimum point of the average variable cost (AVC) curve corresponds to the point where the average product (AP) is maximized. This is because AVC is inversely related to AP, so when AP is at its maximum, AVC is at its minimum.

The Minimum Point of the Average Variable Cost Curve Is