When average cost is "u-shaped" (neither always rising or always falling),the marginal cost curve will
A) cross through (bisect) the average cost curve at its maximum.
B) not intersect with the average cost curve at all.
C) be a fixed distance above the average cost curve.
D) cross through (bisect) the average cost curve at its minimum.

Question

Quizplus · Accepted Answer

When average cost is "u-shaped", the marginal cost curve intersects the average cost curve at its minimum point. This is because the marginal cost curve cuts through both the average variable cost curve and the average total cost curve at their lowest points.

When Average Cost Is "U-Shaped" (Neither Always Rising or Always