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JAMB Economics 2008 Question 23

Question 23

Theory of Costs and Revenue

From the graph above, point M shows that MC

Diagram for this question
  1. A.cuts AC at its minimum point
  2. B.and AC rise simultaneously
  3. C.cuts AC at its maximum point
  4. D.is falling
Show the answer and explanation

Answer: A (cuts AC at its minimum point)

Explanation

M marks where the rising MC curve crosses the U-shaped AC curve, which happens at AC's minimum point.