If marginal costs equal average total costs ?
Correct answer: D. average total cost is minimized
- A. average total cost is falling
- B. average total cost is raising
- C. average total cost is maximized
- D. average total cost is minimized
Explanation
Marginal cost intersects average total cost at its minimum: below that point, marginal cost pulls average cost down, and above it, marginal cost pushes average cost up.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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