Respuesta :
Answer:
The correct answer is: falling; rising; at its minimum point.
Explanation:
The average total cost is the ratio of the total cost incurred in the production process and the level of output. It initially decreases sue to economies of scale. But after reaching a certain level it starts rising because of diseconomies of scale.
Marginal cost is the cost of producing each additional unit of output. It is the change in the total cost because of a change in output level by one unit.
If the marginal cost of producing the last unit is lower than the average cost, producing one more unit will reduce the average cost. So when the marginal cost is below average total cost, ATC is falling.
Similarly, if the marginal cost of producing the last unit is greater than the average cost, producing one more unit will increase the average cost. So when the marginal cost is above average total cost, ATC is rising.
So, the marginal cost curve must be intersecting ATC at its minimum point.
The marginal cost at each point would be falling and rising at its minimum point.
What is Marginal Cost?
Marginal cost is the total cost of producing each additional unit of output. It is a change in total cost due to the result of making or producing one additional unit.
When the marginal cost of manufacturing the last unit is lower than the average cost, manufacturing one more unit of that product would reduce the average cost. So when Marginal cost is below average, the ATC would fall and when it is above total cost, the ATC would rise. Therefore, the marginal cost curve would intersect ATC at its minimum point.
Learn more about Marginal Cost here:
https://brainly.com/question/16615264
