Relation between Marginal Cost and Average Cost
(a) MC and AC both can be calculated by TC.
(b) When AC falls, MC also falls but AC > MC.
(c) When AC rises, MC also rises, but now MC > AC.
(d) When AC is minimum, then MC = AC.
In other words, MC curve cuts the AC curve at its minimum point (i.e. optimum point) and goes upwards.
