The marginal-cost curve intersects the average-total-cost curve at the minimum point of the average-total-cost curve.

Question

Quizplus · Accepted Answer

The marginal-cost curve intersects the average-total-cost curve at its minimum point because when marginal cost is below average total cost, it pulls the average down, and when it is above, it pulls the average up. Thus, the intersection point marks the minimum of the average total cost.

The Marginal-Cost Curve Intersects the Average-Total-Cost Curve at the Minimum