The output level that minimizes the average cost, occurs at the same level where the firm...

Question

Question

The output level that minimizes the average cost, occurs at the same level where the firm minimizes the Marginal Cost

True or False

business economics

Answer 1

Answer #1

False

Explanation:

Minimum average total cost occurs at output where MC = ATC, but it does not occur at the same level where the firm minimizes the marginal cost.

The minimization of marginal cost occur at the output before the output where average cost minimizes.

Answer 2

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