When the cost curves have U-shapes, at the point where marginal cost equals average total cost:

Question

Quizplus · Accepted Answer

When the cost curves have U-shapes, the point where marginal cost equals average total cost corresponds to the minimum point of average total cost, and marginal cost is 'pulling' it upward. Therefore, the correct option is (D) average total cost is at its minimum and the marginal cost is rising. Average variable cost and fixed cost are not related to this point.

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