Which of the following is true with respect to relationship between AC and MC?

CA Foundation · Business Economics · MTP · May 2026
Which of the following is true with respect to relationship between AC and MC?
(A) A. When MC> AC, AC falls
(B) B. AC curve intersects MC curve at minimum MC
(C) C. MC curve intersects AC curve at minimum AC
(D) D. When MC < AC, ATC rises

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. MC curve intersects AC curve at minimum AC

Topics: Theory of Production and Cost

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