When the marginal cost curve intersects the average variable cost curve, which of the following istrue?Marginal cost is equal to marginal revenue.This is the quantity a firm would choose to produce in the short run.Average total cost is at its lowest point.Average total cost is at its highest point.Average variable cost is at its lowest point.

AVC=TVC/Q MC= change in TC/ change in Q

rue? Marginal cost is equal to marginal revenue. O This is the quantity a firm would choose to produce in the short run. O Average total cost is at its lowest point. O Average total cost is at its highest point. Average variable cost is at its lowest point.

rue? Marginal cost is equal to marginal revenue. O This is the quantity a firm would choose to produce in the short run. O Average total cost is at its lowest point. O Average total cost is at its highest point. Average variable cost is at its lowest point.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter8: An Introduction To Perfect Competition

Section: Chapter Questions

Problem 4QFR

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Question

When the marginal cost curve intersects the average variable cost curve, which of the following is
true?
Marginal cost is equal to marginal revenue.
This is the quantity a firm would choose to produce in the short run.
Average total cost is at its lowest point.
Average total cost is at its highest point.
Average variable cost is at its lowest point.

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