Use the following to answer question(s):
-(Exhibit: Costs of Producing Bagels) Average total cost reaches its minimum value for the ________ bagel.
A) first
B) third
C) fourth
D) fifth

Question

Use the following to answer question(s):  
-(Exhibit: Costs of Producing Bagels) Average total cost reaches its minimum value for the ________ bagel.
A) first 
B) third 
C) fourth 
D) fifth

Quizplus · Accepted Answer

The point at which average total cost reaches its minimum value is where the marginal cost curve intersects the average total cost curve. This occurs at the fourth bagel in the exhibit. Therefore, the correct choice is C.

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