When the cost curves have U-shapes, at the point where marginal cost equals average total cost:
A) the fixed cost has been fully depreciated.
B) average fixed cost is rising.
C) average total cost is at its minimum.
D) average variable cost is falling.

Question

Quizplus · Accepted Answer

When the cost curves have U-shapes, the point where marginal cost equals average total cost is the point where average total cost is at its minimum. Therefore, the correct answer is C.

When the Cost Curves Have U-Shapes, at the Point Where