The marginal cost curve crosses
A)both the average total cost and average variable cost curves at their respective minimum points
B)the average total cost curve at its minimum point,and the average variable cost curve at its maximum point
C)the average total cost curve and the average variable cost curves at the same output level
D)both the average total cost and average variable cost curves at their respective maximum points
E)the average total cost curve at its maximum point,and the average variable cost curve at its minimum point

Question

Quizplus · Accepted Answer

The marginal cost curve represents the additional cost incurred to produce one more unit of output. At the minimum points of the average total cost (ATC) and average variable cost (AVC) curves, the marginal cost curve will intersect. This is because at these points, the additional cost of producing one more unit of output is equal to the average cost of producing that unit. Therefore, the correct answer is A, which states that the marginal cost curve crosses both the ATC and AVC curves at their respective minimum points.

The Marginal Cost Curve Crosses