Answer-Which of the following statements is (in general) true?

Solution Average variable cost is per unit cost of variable expenses and marginal cost is the change in total cost when an additional unit is produced. As per the relation between these two costs, AVC is minimum where MC AVC

Question

Which of the following statements is (in general)

true?

A Marginal Cost (MC) is minimized where MC= Average Variable Cost (AVC)

B Average Total Cost (ATC) is maximized where MC = ATC

C Average Variable Cost (AVC) is minimized where MC = AVC

D Total Revenue is maximized where MC =Marginal Revenue (MR)

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