Asked by Marina Carosella on Jul 23, 2024
Verified
The marginal cost curve intersects the average variable cost curve at:
A) its lowest point.
B) its maximum.
C) its end point.
D) no point;the curves don't intersect.
Marginal Cost Curve
A graphical representation showing how the cost to produce one additional unit of a good changes as more of that good is produced.
Average Variable Cost Curve
A graphical representation showing how the average variable cost of production changes as the quantity of output changes.
- Investigate the correlation between the marginal cost and average cost curves.
Verified Answer
PT
phakamani tshabanguJul 29, 2024
Final Answer :
A
Explanation :
The marginal cost curve intersects the average variable cost curve at its lowest point because the point where the marginal cost curve crosses the average variable cost curve is where the additional cost of producing one more unit is equal to the average cost of producing each unit, which is minimized at the lowest point of the average variable cost curve.
Learning Objectives
- Investigate the correlation between the marginal cost and average cost curves.