The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-At its minimum point, the average-total-cost curve is intersected by the:

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-At its minimum point, the average-total-cost curve is intersected by the:

Quizplus · Accepted Answer

At its minimum point, the average total cost curve is intersected by the marginal cost curve. This is because when marginal cost is below average total cost, it pulls the average down, and when it is above, it pulls the average up. The intersection point represents the minimum average total cost.

The Below Figure Shows the Various Combinations of the Goods