Question

All of the following cost measures reach their minimum points when they are equal to the value of marginal​ cost, except one. Which cost measure is the​ exception?

Answer 1

Answer: The answer is the average fixed cost.

Explanation: Fixed costs are the costs associated with the manufacture of a product that do not change regardless of the number of units produced. The average fixed cost is the amount of the fixed cost per unit of product manufactured.

Therefore, the average fixed cost reaches a minimum value as more product units are manufactured.