Asked by Marquel WindyBoy on Jul 09, 2024
Verified
The marginal-cost curve intersects the average-fixed-cost curve at the minimum of marginal cost.
Marginal-Cost Curve
A graphical representation that shows how the cost of producing one additional unit of a good varies as the production volume changes.
Average-Fixed-Cost Curve
A graphical representation that shows the fixed costs of production per unit of output declining as the quantity of output increases.
- Recognize the relationship between marginal cost and average total cost and how it informs production decisions.
Verified Answer
TC
Taylor CollierJul 16, 2024
Final Answer :
False
Explanation :
The marginal-cost curve intersects the average-total-cost curve at its minimum, not the average-fixed-cost curve. The average-fixed-cost curve continually declines as output increases, and it does not have a minimum point where it intersects with the marginal-cost curve.
Learning Objectives
- Recognize the relationship between marginal cost and average total cost and how it informs production decisions.
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