Question

At which point does the SMC curve cut the SAC curve? Give reason in support of your answer.

NCERT Class XII
Economics - Introductory Microeconomics

Chapter 3. Production and Costs

Answer 1

SMC curve cut the SAC curve at minimum point of SAC curve.
Reasons:
1.When SMC and SAC fall the rate of falling of SMC is less than the SAC.
2.When SMC and SAC rise the rate of rising of SMC is greater than the SAC.