Use the figure to answer the following question(s).
Figure 8-4

The average variable cost (AVC) and average total cost (ATC) for a firm are indicated in Figure 8-4. If the marginal cost curve were constructed, at what output would it cross the AVC curve?

Question

Use the figure to answer the following question(s).
Figure 8-4

The average variable cost (AVC) and average total cost (ATC) for a firm are indicated in Figure 8-4. If the marginal cost curve were constructed, at what output would it cross the AVC curve?

Quizplus · Accepted Answer

The marginal cost (MC) curve crosses the AVC curve at its lowest point. In Figure 8-4, the lowest point on the AVC curve is at an output of 3, so the MC curve would cross the AVC curve at an output of 3. Therefore, the answer is C.

Use the Figure to Answer the Following Question(s)