As a CA finalist, beta, I tell you that MC cuts AVC and ATC at their minimum points due to the mathematical relationship between marginal and average quantities. When MC is below average, it pulls the average down; when MC is above, it pulls the average up, so the intersection must be at the lowest average cost. But in my pickle business, the real lowest cost is never on a chart—it's when I bargain for good mustard oil at the market. My ATC's minimum point keeps shifting upward with oil prices, while the curve on paper stays still.
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