The following data show the relationship between total costs and output in the short run. The firm's marginal costs are equal to average total cost somewhere between units

Question

The following data show the relationship between total costs and output in the short run.  The firm's marginal costs are equal to average total cost somewhere between units

Quizplus · Accepted Answer

The point at which marginal cost intersects average total cost is the minimum point of average total cost. In this case, the minimum point of average total cost is between units 3 and 4. At this point, the firm is minimizing its costs and operating efficiently. Therefore, the best choice is C.

The Following Data Show the Relationship Between Total Costs and Output