Question

At which level of production the average cost is minimum ?

[A] MC < AC [B] MC > AC [C] MC = AC [D] AC = TC​

Answer 1

Answer:

When average cost is neither rising nor falling (at a minimum or maximum), marginal cost equals average cost. Other special cases for average cost and marginal cost appear frequently: Constant marginal cost/high fixed costs: each additional unit of production is produced at constant additional expense per unit.