If the marginal product curve is intersecting the average product curve, we know that
A) the average variable cost curve is intersecting the average total cost curve.
B) the marginal cost curve is intersecting the average fixed cost curve.
C) the average total cost curve lies above the marginal cost curve.
D) the marginal cost curve is intersecting the average total cost curve.

Question

Quizplus · Accepted Answer

When the marginal product curve intersects the average product curve, it indicates that the average product is at its maximum, and the marginal product is equal to the average product. This also means that the average total cost curve is at its minimum, and the marginal cost curve intersects the average total cost curve. Therefore, option D is the correct answer.

If the Marginal Product Curve Is Intersecting the Average Product