In the Short Run,the Marginal Cost Curve Crosses the Average

question 72

Multiple Choice

In the short run,the marginal cost curve crosses the average total cost curve at:

• A) a point just below the average fixed cost curve.
• B) the minimum point of the average total cost curve.
• C) the maximum point of the average total cost curve.
• D) the point where the average total cost curve and average variable cost curve intersect.

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Definitions:

MC Curve

The Marginal Cost Curve, depicting the increase in total cost that arises from producing one additional unit of a good or service.

Cost Curves

Graphs that show the cost of producing different quantities of a good or service, typically including average and marginal cost curves.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Total Cost

The total cost is the sum of fixed and variable costs incurred in the production of goods or services.