Read the two statements and choose the correct option.
I. When AC is at its minimum, AC = MC.
II. When AVC is at its minimum, AVC = AFC.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

I is true: MC cuts AC at AC's minimum.
II is false: at AVC's minimum it is MC that equals AVC; AFC has no special relation there.

Ten questions from Cost Curves, at your own pace.

Ten questions from Cost Curves, at your own pace.

Read the two statements and choose the correct option.I. When AC is at its minimum, AC = MC.II. When AVC is at its minimum, AVC = AFC.