The marginal-cost curve intersects the average-total-cost curve at the minimum point of the marginal-cost curve.
a. true
b. false

Respuesta :

False. Only at the minimum point of the average cost curve can the marginal cost curve cross it. AC falls when the marginal cost is lower than the average cost. This happens because the average cost is lowered when the additional unit of output is less expensive than the average cost.

The cost per unit produced in a production run is called the average cost. It stands for the typical sum of money spent on a product's production. Depending on how many units are made, this amount may change.

As demonstrated in this example, in order to determine the average cost, the entire cost must be divided by the quantity of output. For instance, we can make 1500 chocolate bars for a total of $3500. Consequently, it costs $2.33 on average to produce 1500 chocolate bars.

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