New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following statements is (in general)

    true?
    A Marginal Cost (MC) is minimized where MC= Average Variable Cost (AVC) Correct Answer Incorrect Answer
    B Average Total Cost (ATC) is maximized where MC = ATC Correct Answer Incorrect Answer
    C Average Variable Cost (AVC) is minimized where MC = AVC Correct Answer Incorrect Answer
    D Total Revenue is maximized where MC =Marginal Revenue (MR) Correct Answer Incorrect Answer

    Solution

    Solution Average variable cost is per unit cost of variable expenses and marginal cost is the change in total cost when an additional unit is produced. As per the relation between these two costs, AVC is minimum where MC =AVC 

    Practice Next