Final answer:
The statement is true; the minimum point of the ATC curve occurs at the point of intersection with the MC curve, indicating the most efficient scale of production for minimizing costs.
Step-by-step explanation:
The statement that the minimum point of the ATC curve occurs where it intersects the MC curve is true. This intersection represents the point where the marginal cost of producing an additional unit of output equals the average total cost of producing the previous units. Below this intersection, the marginal cost is lower than the average total cost, causing the ATC to decrease; above this intersection, the marginal cost is higher, which leads the ATC curve to increase, indicating that the production of any additional units will raise the average total cost. This intersection point is critical for firms as it signifies the most efficient scale of production where they can minimize their costs. Hence, understanding the relationship between marginal cost and average total cost is important for businesses to determine their optimal output level and pricing strategies. The concept is also crucial for economics students who are studying cost curves and their implications for firm behavior and market structures.