Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


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?

Accounting

Can an average cost curve start from a y-axis touch?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

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:

  • ATC=TCQATC=TCQ

Along the y-axis, Q = 0. Therefore:

  • ATC=TC0=∞ATC=TC0=∞

The average total cost therefore does not intersect the y-axis.