The marginal cost curve intersects the average cost curve when the average cost is

✅ Explanation: The marginal cost (MC) curve intersects the average cost (AC) curve at the AC curve's lowest point. This is because when MC is below AC, it pulls the average down, and when MC is above AC, it pulls the average up. Therefore, the intersection point must be where AC is neither falling nor rising, which is its minimum point.

🔑Key Points:

✏️Relationship Between Average Cost (AC) and Marginal Cost (MC):
-The average cost (AC) curve intersects the marginal cost (MC) curve at the minimum point of the AC curve.
-When marginal cost (MC) is less than average cost (AC), the AC curve is falling, and when MC is greater than AC, the AC curve is rising.
-The point where MC equals AC is where AC is at its minimum. At this point, the firm is operating most efficiently in terms of minimizing cost per unit of output.
Additional Information
-Average cost refers to the cost per unit of output. It is calculated as the ratio of total cost to total output.
-Average Cost (AC) = Total Cost (TC) / Output (Q)
-Marginal cost refers to the addition to total cost when one more unit of output is produced.
-Marginal Cost (MC) = Change in Total Cost (Δ TC) / Change in Output (Δ Q)
-The zero slope of the average cost curve implies that the cost has reached its minimum level.
-At the minimum level, the average cost becomes equal to the marginal cost.