Which of the following statements is correct?
A) Average variable costs always exceed average total costs.
B) Average fixed costs are constant.
C) Average variable cost reaches its minimum when average product equals its maximum.
D) Average fixed costs are always less than average variable costs.

Question

Quizplus · Accepted Answer

Average variable cost reaches its minimum at the point where average product is at its maximum because the efficiency in production is highest at this point, spreading the variable costs over a larger number of units.

Which of the Following Statements Is Correct