If a ray that is drawn from the origin to a point on a total cost curve is tangent to the total cost curve, then its slope is equal to the minimum average total cost of production.

Question

Quizplus · Accepted Answer

The slope of a ray from the origin to a point on the total cost curve represents the average total cost at that point. When the ray is tangent to the total cost curve, it indicates the point where the average total cost is at its minimum, as the tangent point represents the lowest average cost achievable for any level of output.

If a Ray That Is Drawn from the Origin to a Point