why does ac cuts mc at its lowest point?
there is a close relationship between AC curve and MC curve.
MC=(change)TC/(change)Q and AC=TC/Q;Where TC=Total Cost and Q=output
when MC<AC,then AC falls
when MC=AC then ac is constant
when MC>AC then ac rises
MC Curve lies below AC Curve and then rises
therefore, MC curve always intersect AC at its lowest point