Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?
A)The marginal cost curve is always above the average variable cost curve.
B)The average variable cost curve is always above the marginal cost curve.
C)The marginal cost curve crosses the average variable cost curve at the average variable cost curves' minimum point.
D)The marginal cost curve crosses the average variable cost curve at the marginal cost curves' minimum point.
E)Both the average variable cost curve and the marginal cost curve first rise and then fall.

Question

Quizplus · Accepted Answer

The marginal cost curve intersects the average variable cost curve at the point where the average variable cost curve is at its minimum value. This is because the marginal cost curve represents the additional cost of producing one more unit of output, and when this cost is less than the average variable cost, it contributes to lowering the average variable cost. Once the marginal cost curve crosses the average variable cost curve, the average variable cost curve starts to rise again.

Which of the Following Correctly Describes the Relationship Between the Marginal