The marginal cost curve always intersects the average total cost curve at the minimum of average total cost.

Question

Quizplus · Accepted Answer

This statement is true. The marginal cost curve represents the additional cost of producing one more unit of output, while the average total cost curve represents the total cost per unit of output. The minimum point of the average total cost curve indicates the point at which the cost per unit of output is at its lowest. Since the marginal cost curve intersects the average total cost curve at this point, it follows that the marginal cost of producing an additional unit of output at this point is also at its lowest.

The Marginal Cost Curve Always Intersects the Average Total Cost