Author Question: Which of the following is true of the MC curve? a. It intersects the ATC curve at its minimum, but ... (Read 93 times)

cabate · **on:** Jun 30, 2018

Which of the following is true of the MC curve?
a. It intersects the ATC curve at its minimum, but it does not intersect the AVC curve at its minimum.
b. It intersects the AVC curve at its minimum, but it does not intersect the ATC curve at its minimum.
c. It intersects both the ATC and the AVC curves at their minimums.
d. It intersects both the ATC and the AFC curves at their minimums.
e. It intersects both the AVC and the AFC curves at their minimums.

Question 2

If marginal cost is less than average total cost,
a. marginal cost must be falling
b. average total cost must be increasing
c. average variable cost equals average total cost
d. average variable cost must be decreasing
e. average variable cost may be increasing or decreasing