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What curve intersects the minimum of the average total cost curve?

What curve intersects the minimum of the average total cost curve?

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Answer #1
  • The marginal cost curve Intersects the minimum of the average total cost curve.
  • The marginal cost represents the cost incurred by a firm for producing one more unit of an output while the average total cost represents the total cost per quantity of output produced by a firm.
  • The firms aim at minimising their average total cost of producing the overall output. Hence they always try to keep the marginal cost as low as possible as an Increase in single unit of an output can Increase the marginal cost Which can further increase the average total cost incurred by the firm.
  • Hence the marginal cost curve always Intersects the average total cost curve at its minimum point.
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