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

-When the average total cost is at its minimum, it is:

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-When the average total cost is at its minimum, it is:

Quizplus · Accepted Answer

When the average total cost is at its minimum, it is equal to marginal cost. This is because at the point where ATC is minimized, the marginal cost equals the average cost. Therefore, the correct answer is D, "equal to marginal cost."

The Below Figure Shows the Various Combinations of the Goods