Exam Question
“If both average cost (AC) and marginal cost (MC) are U shaped, then”
- 1. AC will reach a minimum at a level of output that is less than that at which MC reaches a minimum
- 2. the total cost curve will be a straight line
- 3. AC will reach a minimum at a level of output that is greater than that at which MC reaches a minimum
- 4. both AC and MC will reach a minimum at the same level of output
View Answer
Answer 3. AC will reach a minimum at a level of output that is greater than that at which MC reaches a minimum
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