Which of the following statement correctly describes the relationship between Marginal Cost (MC), Average Total Cost (ATC), and Average Variable Cost (AVC) in the short-run? Choose the correct options from below :
A. The AVC curve intersects the ATC curve at the minimum point of the MC curve.
B. When MC is less than AVC or ATC, it will pull AVC and ATC downward.
C. MC equals ATC and AVC at their maximum points.
D. When MC is above AVC and ATC, it will push AVC and ATC upward.
1
A,B and D
2
A, B and C
3
B and D only
4
A,B,C and D