The table given below shows the average total cost of production of a firm at different levels of the output. Table 21.5
Refer to Table 21.5.At what level of production will the average total cost curve intersect the marginal cost curve?

Question

The table given below shows the average total cost of production of a firm at different levels of the output. Table 21.5
 Refer to Table 21.5.At what level of production will the average total cost curve intersect the marginal cost curve?

Quizplus · Accepted Answer

The average total cost curve intersects with the marginal cost curve at the point where the average total cost is at its minimum. Looking at the table, we can see that the average total cost is at its minimum at 4 units of production, which is where the curve intersects with the marginal cost curve. Therefore, the answer is E) 4 units.

The Table Given Below Shows the Average Total Cost of Production