If marginal cost is equal to average total cost:
A) average total cost is increasing.
B) average total cost is at its maximum.
C) average total cost is at its minimum.
D) marginal cost is decreasing.

Question

Quizplus · Accepted Answer

When marginal cost equals average total cost, the average total cost is at its minimum point. This is because the marginal cost curve intersects the average total cost curve at its lowest point.

If Marginal Cost Is Equal to Average Total Cost