Question

The marginal cost curve crosses the average total cost curve at a. The efficient scale. b. The minimum point on the average total cost curve. c. A point where the marginal cost curve is rising. d. All of the above are correct

Answer 1

Answer:

b. The minimum point on the average total cost curve

Explanation:

the marginal cost is the cost of making or producing one more additional unit of a product and then average total cost is the average of the total cost to produce units so if both these curves intersect then that means that will be the minimum point on the average total cost curve because at a point where if the marginal cost is less than the average cost then the average total cost will fall so the intersection point shows where the average total cost is a minimum because if its above that point the average total cost will rise.