Marginal cost:
A)is equal to average cost at the minimum point of the marginal cost curve.
B)is equal to average cost at the maximum point of the average cost curve.
C)is decreasing whenever average cost is decreasing.
D)is equal to average cost at the minimum point of the average cost curve.

Question

Quizplus · Accepted Answer

Marginal cost is equal to average cost at the minimum point of the average cost curve. This is because when average cost is at its minimum, any additional unit would either increase or maintain the average cost, indicating that the marginal cost (the cost of producing one more unit) is equal to the average cost at that point.

Marginal Cost