Use the figure to answer the following question(s).
Figure 8-4
-The average variable cost (AVC) and average total cost (ATC) for a firm are indicated in Figure 8-4. If the marginal cost curve were constructed, at what output would it cross the AVC curve?
A) 1
B) 2
C) 3
D) 4

Question

Use the figure to answer the following question(s).
Figure 8-4 
-The average variable cost (AVC) and average total cost (ATC) for a firm are indicated in Figure 8-4. If the marginal cost curve were constructed, at what output would it cross the AVC curve?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

The marginal cost (MC) curve intersects the average variable cost (AVC) curve at the minimum point of the AVC curve. This is typically where the AVC is at its lowest, which is often around the midpoint of the output range provided.

Use the Figure to Answer the Following Question(s)