Asked by Nicole Hoskins on Jun 09, 2024
Verified
At the point where marginal cost equals average total cost, average total cost will be
A) at its maximum.
B) decreasing.
C) increasing.
D) at its minimum.
Marginal Cost
The cost of producing one additional unit of a product, calculated by the change in total cost divided by the change in quantity.
- Comprehend how the connection between marginal cost and average total cost affects decisions related to production.
Verified Answer
MS
Manasvi SharmaJun 09, 2024
Final Answer :
D
Explanation :
When marginal cost equals average total cost, average total cost is at its minimum. This is because the marginal cost curve intersects the average total cost curve at its lowest point, indicating the most efficient scale of production.
Learning Objectives
- Comprehend how the connection between marginal cost and average total cost affects decisions related to production.
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