Asked by Christopher Severson on Apr 24, 2024
Verified
Which of the following is correct as it relates to cost curves?
A) Average variable cost intersects marginal cost at the latter's minimum point.
B) Marginal cost intersects average total cost at the latter's minimum point.
C) Average fixed cost intersects marginal cost at the latter's minimum point.
D) Marginal cost intersects average fixed cost at the latter's minimum point.
Marginal Cost
Marginal cost refers to the expense of producing one additional unit of a product or service, indicating the efficiency of production processes.
Average Variable Cost
Average variable cost is the total variable costs of production divided by the number of units produced, indicating the average cost of producing each unit excluding fixed costs.
Average Total Cost
The total cost of production divided by the total quantity produced, indicating the cost per unit of output.
- Identify the behavior of cost curves (MC, ATC, AVC, AFC) in the short run and their interactions.
Verified Answer
Learning Objectives
- Identify the behavior of cost curves (MC, ATC, AVC, AFC) in the short run and their interactions.
Related questions
If the Marginal Cost Curve Is Above the Average Variable ...
If the Marginal Cost Curve Is Below the Average Variable ...
Average Variable and Average Total Costs Get Farther Apart as ...
A Firm Is Producing Output Less Than the Output Associated ...
At an Output ________ of a Firm's Short Run Average ...