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Homework answers / question archive / State True or False and justify your answer: The short-run marginal cost curve passes through the minimum point of the short-run average total cost curve
State True or False and justify your answer:
The short-run marginal cost curve passes through the minimum point of the short-run average total cost curve.
True
The average total cost curve is a U-shaped curve. The relationship between the marginal cost and the average total cost curve is that when the marginal cost is less than the average total cost MC<ATCMC<ATC, the average total cost is falling and when the marginal cost is greater than the average total cost MC>ATCMC>ATC, the average total cost is rising. Therefore, the marginal cost curve will intersect the average total cost curve st its minimum point.
