Study the graph given below and answer the questions.
Which of the following statement (s) is/are correct?
Statement 1: SMC curve cuts the AVC curve at ‘P ’ which is the minimum point of AVC curve.
Statement 2: The minimum point of SAC curve is ‘S’ which corresponds to the output q2 .
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: Both statements are correct.
Statement 1: SMC curve cuts the AVC curve at ‘P ’ which is the minimum point of AVC curve. Correct.
Statement 2: The minimum point of SAC curve is ‘S’ which corresponds to the output q2 . Correct.