CFA Practice Question

CFA Practice Question

For the cost functions of a firm in a competitive industry:
A. The marginal cost schedule intersects the average cost schedule at the point where the average cost is minimum.
B. The point where the marginal cost schedule intersects the average cost schedule, the marginal cost schedule is falling.
C. The point where the marginal cost is minimum the point where the slope of the average cost schedule equals one.
Explanation: The point where the marginal cost is minimum the point where the slope of the average cost schedule equals zero. The point where the marginal cost schedule intersects the average cost schedule, the marginal cost schedule is rising.

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