Final answer:
The point at which marginal cost (MC) and average total cost (ATC) meet is known as the minimum point of the ATC curve. The ATC curve is at its lowest at this point, and the relationship between MC and ATC can determine whether the ATC curve is upward-sloping or downward-sloping.
Step-by-step explanation:
The point at which marginal cost (MC) and average total cost (ATC) meet is known as the minimum point of the ATC curve. At this point, the ATC curve is at its lowest and marginal unit production either decreases average costs or pulls it up. If the MC of producing an additional unit is below the average cost for producing previous units, the ATC curve will be downward-sloping. On the other hand, if the MC of producing an additional unit is above the average cost, the ATC curve will be upward-sloping.