What happens to the average total cost when marginal cost is equal to average total cost?

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The average total cost is decreasingThe average total cost is increasingThe average total cost reaches its highest pointThe average total cost reaches its lowest point

Explanation

When marginal cost equals average total cost, the average total cost is at its minimum value. This is because if marginal cost is below average total cost, the average is decreasing, and if it is above, the average is increasing. Therefore, equality indicates the lowest point of average total cost.