The marginal cost curve intersects the average variable cost curve at:
A) the minimum point of the average variable cost curve
B) the peak of the average variable cost curve
C) the beginning of the average variable cost curve
D) the maximum point of the average variable cost curve

Question

Quizplus · Accepted Answer

The marginal cost curve intersects the average variable cost curve at its minimum point because when marginal cost is less than average variable cost, the average variable cost is decreasing, and when marginal cost is greater than average variable cost, the average variable cost is increasing.

The Marginal Cost Curve Intersects the Average Variable Cost Curve