Question

Why must marginal cost curve pass through the minimum point of average cost curve?

Answer 1

Heya...

Marginal cost is the change in total cost when one mode unit is produced...

Average cost is the cost per unit of output..

MC curve must pass through the minimum point of average cost because....

It means that producer is in Equilibrium and the marginal cost is contacting to the average cost ,, ensuring the stability of the revenue....

Answer 2

Marginal cost must curve pass through the minimum point of average cost curve to ensure the stability of the revenue.


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