-In Exhibit H-3 the
A) total fixed cost curve is positively sloped
B) average fixed cost reaches a minimum at 400 units
C) total variable cost curve is U-shaped
D) average total cost equals marginal cost at 300 units
E) marginal cost equals average variable cost between 300 and 400 units

Question

-In Exhibit H-3 the
A) total fixed cost curve is positively sloped 
B) average fixed cost reaches a minimum at 400 units 
C) total variable cost curve is U-shaped 
D) average total cost equals marginal cost at 300 units 
E) marginal cost equals average variable cost between 300 and 400 units

Quizplus · Accepted Answer

Marginal cost equals average variable cost when the average variable cost is at its minimum, which typically occurs between certain output levels, such as between 300 and 400 units.