2. The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC. d. cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC. b. cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC. e. cut both ATC and AVC at their respective minimums c. cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC.     Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Please use a graph in your answer, and explain in as much detail as possible.

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A:

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.