Question

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

Answer 1

Answer:

Step-by-step explanation:

We know that the marginal cost (MC) curve is upward sloping when it intersects with the average total cost (ATC) curve. ... This means that for as long as MC is less than ATC, ATC will go down with each extra unit made. At some point, MC rises to the point that it equals ATC and the curves intersect.

Answer 2

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SLOPE of marginal revenue curve is less than slope of marginal cost curve

• They have the same constant, and the marginal revenue curve is twice as steep as the demand curve.
• The coefficient on Q is twice as large in the marginal