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2 marksTheory of Supply

CAPE Economics Unit 1 · 2005 · Paper 1 · Question 5(b)

Explain why the Marginal Cost Curve (MC) intersects the ATC and AVC curves at their respective minimum points.

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Other parts of this question

  1. 5(a)State the difference between the Average Total Cost Curve (ATC) and the Average Variable Cost Curve (AVC).[1 mark]
  2. 5(c)Explain why point 'A' represents the shutdown point for the firm.[3 marks]

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