When average cost is "u-shaped" (neither always rising nor always falling), the marginal cost curve will not intersect with the average cost curve at all.

Question

Quizplus · Accepted Answer

When the average cost curve is U-shaped, the marginal cost curve will intersect with the average cost curve at the point where the average cost curve is at its minimum. This is known as the "bottom of the U". Therefore, the statement is false.

When Average Cost Is "U-Shaped" (Neither Always Rising nor Always