The marginal cost curve intersects the average total cost curve in monopolistic competition:
A) at the market price.
B) at the minimum average total cost.
C) to the left of the minimum average total cost.
D) to the right of the minimum average total cost.

Question

Quizplus · Accepted Answer

The marginal cost curve intersects the average total cost curve at its minimum point, which is a characteristic of cost curves in both perfect and monopolistic competition.

The Marginal Cost Curve Intersects the Average Total Cost Curve