The marginal cost (MC) curve intersects the
A) ATC, AVC, and AFC curves at their minimum points.
B) ATC and AFC curves at their minimum points.
C) AVC and AFC curves at their minimum points.
D) ATC and AVC curves at their minimum points.

Question

Quizplus · Accepted Answer

The marginal cost (MC) curve intersects the average total cost (ATC) and average variable cost (AVC) curves at their minimum points because these are the points where the cost of producing one more unit equals the average cost of production. The average fixed cost (AFC) curve does not have a minimum point as it continuously declines.

The Marginal Cost (MC) Curve Intersects the