GCE Economics 2025 Objective — Question 34
Question 34 of 60 from the General Certificate of Education (GCE) Economics 2025 Objective paper, with the correct answer and a full explanation.
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At a point where marginal cost equals average cost, average cost is at its
- A. lowest pointCorrect
- B. highest point
- C. decreasing
Explanation
When MC = AC, average cost is at its minimum. This is because MC pulls AC down when MC < AC and pulls it up when MC > AC.
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