Question

At what point of the average variable cost curve and average cost curve does the marginal cost curve cut?

Answer 1

• The marginal cost (MC) curve cuts both the Average Variable Cost (AVC) curve, and Average Cost (AC) curve at their minimum points. 
• Because when MC = AVC or MC = AC, it means the average is neither rising nor falling, it is at its lowest (minimum) point. That's where the MC curve intersects them.