Explain Why the Marginal Cost Curve Intersects Average Total Cost

question 44

Essay

Explain why the marginal cost curve intersects average total cost at the point of minimum average total cost.

---

Definitions:

Operations

entails the daily activities, processes, and functions carried out in running a business, particularly related to production of goods or services.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the gain from the investment by its cost.

Cost Centre Managers

Individuals responsible for managing a department or unit within an organization that does not directly add to profit but incurs costs.

Variance Analysis

The process of investigating the difference between planned financial outcomes and actual financial performance.