Question

the marginal cost intersects the average variable cost
a. in its upward - sloping section and the average total cost through its downward - sloping section.
b. through its minimum point and the average total cost through its maximum point.
c. and the average total cost through their minimum points.
d. and the average total cost through their upward - sloping sections.

Explanation:

This is a core concept in cost theory: when marginal cost (MC) is less than average variable cost (AVC) or average total cost (ATC), it pulls the average down. When MC is greater than the averages, it pulls them up. This means MC must intersect both AVC and ATC at their lowest (minimum) points.

Answer:

c. and the average total cost through their minimum points.