# What is the Relation Between Marginal Cost and Average Cost When Average Cost is Constant? - Economics

What is the relation between marginal cost and average cost when average cost is constant?

#### Solution

If the average cost remains constant, marginal cost (MC) is equal to average cost (AC) because the AC curve reaches its lowest point. It implies that the MC curve intersects the AC curve at its minimum point.

Concept: Total, Average and Marginal Cost
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