As we observe the cost curves graph,we see that the
A) MC curve intersects the ATC curve at its maximum.
B) MC curve cannot be U-shaped.
C) ATC curve always has a negative slope.
D) MC curve intersects the AVC curve and ATC curve at their minimums.
E) MC constantly falls as output increases.

Question

Quizplus · Accepted Answer

The minimum points of AVC and ATC curves identify the stages of the firm's production where its variable and total costs per unit are at a minimum, respectively. At this point, the MC curve intersects the AVC and ATC curves. Thus, the correct answer is D as the MC curve intersects the AVC and ATC curves at their minimums.

As We Observe the Cost Curves Graph,we See That the