PRC-3 · Chapter 12 · Question 66 of 69
Which of the following statements concerning short-run cost curves is mathematically correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Marginal Cost (MC) will equal Average Total Cost (ATC) exactly when ATC is at its minimum point
Explanation
It is a mathematical rule of averages that the marginal cost curve must cut through the average total cost curve exactly at its lowest point.
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