Shapes of Average and Marginal Cost Curves in the Short Run
Marginal cost...
Question
Marginal cost curve always cuts the average cost curve:
A
From below on the falling portion of the AC curve
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B
From the below on the rising portion of the AC curve
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C
From below on the minimum point of the AC curve
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D
From the below on any point of the AC curve
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Solution
The correct option is C From below on the minimum point of the AC curve Relationship between MC and AC curve shows that MC curve always cuts the AC curve from below.