Marginal cost curve intersects average cost curve at _____.

At minimum point of average cost curve.

The correct answer is Option (2) → At minimum point of average cost curve.

The Marginal Cost (MC) curve always intersects the Average Cost (AC) curve at its minimum point.

• When MC < AC, the average cost is falling.

• When MC > AC, the average cost is rising.

• Therefore, MC = AC only at the minimum point of the AC curve.