The MC curve intersects the AVC and ATC curves at their minimum points
A)none of the time.
B)some of the time.
C)most of the time.
D)all of the time.

Question

Quizplus · Accepted Answer

This statement is true for all types of industries, including perfectly competitive, monopolistically competitive, oligopolistic, and monopolistic markets. At the minimum point of AVC and ATC, the MC curve intersects because any further production would result in a higher average cost. Hence, the MC curve is considered the supply curve for the firm in the short run, and the intersection of MC with AVC and ATC shows the profit-maximizing level of output.

The MC Curve Intersects the AVC and ATC Curves at Their