Asked by Destiny Jones on May 19, 2024
Verified
The minimum points of the average variable cost and average total cost curves occur where the
A) marginal cost curve lies below the average variable cost and average total cost curves.
B) marginal cost curve intersects those curves.
C) average variable cost and average total cost curves intersect.
D) slope of total cost is the smallest.
Marginal Cost Curve
A graphical representation that shows how the cost of producing one additional unit of a good varies as production increases.
Average Total Cost
The total cost of production divided by the number of units produced, representing the cost per unit.
- Examine the association among marginal cost, average total cost, and production efficiency scale.
- Examine and elucidate the diverse cost curve configurations within the framework of production and cost investigation.
Verified Answer
AK
Ananyaa KashyapMay 20, 2024
Final Answer :
B
Explanation :
The minimum points of the average variable cost (AVC) and average total cost (ATC) curves occur where the marginal cost (MC) curve intersects those curves. This is because the MC curve intersects the AVC and ATC curves at their lowest points, indicating the minimum cost of producing an additional unit of output.
Learning Objectives
- Examine the association among marginal cost, average total cost, and production efficiency scale.
- Examine and elucidate the diverse cost curve configurations within the framework of production and cost investigation.