Use the figure to answer the following question(s).
Figure 8-4
-According to Figure 8-4, at what output would a properly constructed marginal cost curve cross the ATC curve?
A) 2
B) 3
C) 4
D) 5

Question

Use the figure to answer the following question(s).
Figure 8-4 
-According to Figure 8-4, at what output would a properly constructed marginal cost curve cross the ATC curve?
A) 2 
B) 3 
C) 4 
D) 5

Quizplus · Accepted Answer

The marginal cost curve crosses the average total cost (ATC) curve at its lowest point. This is typically where the ATC is minimized, which is often at the output level of 4 in many standard economic models.

Use the Figure to Answer the Following Question(s)