The marginal cost curve intersects the minimum point of the average variable cost curve.

Question

Quizplus · Accepted Answer

This is because the minimum point of the average variable cost curve represents the point at which the firm is operating at the most efficient level in terms of minimizing variable costs. At this point, the marginal cost curve intersects the average variable cost curve from below and hence, the average variable cost curve slopes downwards from this point.

The Marginal Cost Curve Intersects the Minimum Point of the Average