Question: Why does the marginal cost curve intersect the average variable and average total cost curves at their respective minimum points?

Why does the marginal cost curve intersect the average variable and average total cost curves at their respective minimum points?

Step by Step Solution

★★★★★

3.32 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Whenever the marginal lies below the average it pulls the av... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

825-B-E-M-E (8014).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

The MC curve intersects the AVC and ATC curves at their respective minimum points. 1. State the average-marginal rule. 2. Draw a graph depicting the relationships between MC, ATC, and AVC.

Q:

Explain why the marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum.

Q:

In Figure, the total benefit and total cost curves are represented by the following mathematical functions: TB = TB (A) = 8A 0.004 A 2 and TC = TC (A) = A + 0.006 A 2 a. Find the marginal benefit...

Q:

In the short run which of the following statements is correct? Multiple Choice The marginal cost curve intersects the average variable and average fixed cost curves at their minimum points. Average...

Q:

Where does the marginal cost curve intersect the average variable cost curve and the average total cost curve?

Q:

Why does the marginal cost curve intersect the average variable cost curve at the minimum point?

Q:

Q-10 Why does the marginal cost curve intersect the average variable cost curve at the minimum point?

Q:

When marginal cost curve intersect with average variable cost, Question 3 5 options: Average variable cost is minimized Average variable cost is maximized Average variable cost is falling Average...

Q:

you will be given a scenario that would cause a shift in supply or demand. You will also be required to show how price/quantity changes as Supply and Demand shifts. You can use Microsoft Word or...

Q:

Which statement is true? Group of answer choices The marginal cost curve interests the average variable cost curve and the average total cost curve at their minimum points The marginal cost curve...

Q:

The maker of "Crocs" shoes uses a patented rubber material which is melted and formed into a shoe with an injection molding machine. The rubber is injected into molds in the machine, heated, and then...

Q:

A stock with a required return of 9.81% has the cash flows in the table below. Yr 1 Cash Yr 2 Cash Yr 3 Cash Flows Flows Flows $4.74 Dividend $1.48 Price $6.50 $83.16 How much is the stock worth...

Q:

Question 1 of 3 0 Points: 1 / Saunders 1 - Intro Which of the following are capital market instruments? A . 1 0 - year corporate bonds B . 1 5 - year U . S . government agency bonds C . 3 0 - year...

Q:

Problem 12.21 The following data give the polysilicon resistivities measured at three dif[1]ferent positions for each of six randomly selected silicon wafers. Wafer 1 Wafer 2 Wafer 3 Wafer 4 Wafer 5...

Q:

How could deficit spending help offset the otherwise lower rates of economic growth associated with a crowding-out effect?

Q:

Which of the following statements is true? a. The national debt is the current years amount by which the government is spending more than it collects as taxes. b. Deficits are financed by the...

Q:

How politically popular is it for government to reduce spending or to raise taxes?

Q:

The price of Microsolt (MSFT) today is $100 per share. MSFT has committed to make a $10.00 dividend payment in two years. The 0.0. risk-tree interest rate is flive percent. Assume there is no...

Q:

undefined Question 3. What happens on the balance sheets of banking system and the Fed, when the Fed make $ 75 million loan to First National Bank: (20 p.) a. Banking System (10 p.) Banking System...

Q:

Which of the following statements is CORRECT? a. The income statement gives us a picture of the firm's financial position at a point in time. b. The statement of cash flows tells us how much cash the...