The Marginal Cost Curve Intersects the Average Variable Cost Curve

question 289

Multiple Choice

The marginal cost curve intersects the average variable cost curve at:

• A)its lowest point.
• B)its maximum.
• C)its end point.
• D)no point;the curves don't intersect.

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Definitions:

Average Fixed Cost Curve

A graphical representation showing how average fixed costs (costs that do not change with the level of output) decreases as production increases.

Output

The total amount of goods and services produced by an economy over a specific period.

Levels

Levels refer to the different positions or stages in a hierarchical structure or process, indicating varying degrees of magnitude, importance, or progress.

Efficient Scale

The level of production that minimizes long-term average total costs, resulting from economies of scale without incurring diseconomies of scale.