False.Marginal cost curve can intersect average cost curve only at its minimum point.When the marginal cost is smaller than the average cost, AC decreases. This is because when the extra unit of output is cheaper than the average cost then the Average cost is pulled down. Similarly, when the Marginal cost is greater than the Average cost, the Average cost is pulled up. The point of intersection between marginal cost and Average cost curves is also the minimum of the Average cost curve.
