Q369
MC curve cuts ______ curves at their minimum points
A.
AVC and AC
AnswerB.
AFC and AVC
C.
AC and AFC
D.
All of the above
Answer: Option A
Solution
Answer: Option A
Solution:
MC curve cuts AVC and AC curves at their minimum points. As long as MC is less than ATC, ATC will go down with each extra unit made. At some point, MC rises to the point that it equals ATC and the curves intersect.