When the average total cost curve is at its minimum,we know that the

Question

Quizplus · Accepted Answer

The point of minimum average total cost occurs where the marginal cost curve intersects the average total cost curve. This is because when marginal cost is below average total cost, the average total cost will be decreasing. And when marginal cost is above average total cost, the average total cost will be increasing. Thus, the minimum point is where the two curves intersect. This relationship is not true for any of the other choices.

When the Average Total Cost Curve Is at Its Minimum,we