Figure 5.2
-Figure 5.2 presents a firm's marginal cost, average total cost, average fixed cost, and average variable cost curves. The firm minimizes average total costs by producing ________ units.

Question

Quizplus · Accepted Answer

A firm minimizes average total costs at the output level where the average total cost curve is at its lowest point. This typically occurs where the marginal cost curve intersects the average total cost curve from below.

Figure 5.2 -Figure 5.2 Presents a Firm's Marginal Cost, Average Total Cost