-MC = AVC and MC = ATC at points at which
A) the AVC and ATC curves are at their respective maximums.
B) the AVC and ATC curves are at their respective minimums.
C) the distance between the ATC and AVC curves is at its minimum.
D) the distance between the ATC and AVC curves is at its maximum.

Question

-MC = AVC and MC = ATC at points at which
A) the AVC and ATC curves are at their respective maximums. 
B) the AVC and ATC curves are at their respective minimums. 
C) the distance between the ATC and AVC curves is at its minimum. 
D) the distance between the ATC and AVC curves is at its maximum.

Quizplus · Accepted Answer

The Marginal Cost (MC) curve intersects the Average Variable Cost (AVC) and Average Total Cost (ATC) curves at their minimum points. This is because when MC is below AVC or ATC, it pulls those averages down, and when MC is above, it pushes them up, making the intersection points the minimums of the AVC and ATC curves.

-MC = AVC and MC = ATC at Points at Which