Answer to Question #298270 in Microeconomics for garg

Question

Draw the marginal-cost and average-total-cost curves for a typical firm. Explain why the

curves have the shapes that they do and why they cross where they do.

Answer 1

The marginal cost and the average total cost curves of a typical firm normally intersect at the point of the average total cost which is at the minimum. This point of the intersection of the two curves is said to be the