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Homework answers / question archive / Can an average cost curve start from a y-axis touch?
Can an average cost curve start from a y-axis touch?
The average total cost cannot start from the y-axis. At the y-axis, the average total cost is undefined.
The average total cost is calculated as:
Along the y-axis, Q = 0. Therefore:
The average total cost therefore does not intersect the y-axis.