Home
Class 11
ECONOMICS
Why does Marginal cost curve cut the Ave...

Why does Marginal cost curve cut the Average Variable Cost Curve at its minimum point?

Text Solution

Verified by Experts

It happens because when Average Variable Cost (AVC) falls, Marginal Cost (MC) is less than AVC. When AVC starts rising, MC is more than AVC. So, it is only curve cuts AVC is constant and at its minimum point, that MC is equal to AVC. Therefore, MC curve cuts AVC curve at is minimum point.
Promotional Banner

Topper's Solved these Questions

  • DEMAND AND ITS DETERMINANTS

    SANDEEP GARG|Exercise Model test paper 1|12 Videos

  • DEMAND AND ITS DETERMINANTS

    SANDEEP GARG|Exercise Model test paper 2|12 Videos

  • DEMAND

    SANDEEP GARG|Exercise Unsolved particles|4 Videos

  • ELASTICITY OF DEMAND

    SANDEEP GARG|Exercise Unsolved practicals|79 Videos