Final answer:
The minimum point of the AVC curve does not occur where it intersects the MC curve; this is false. Instead, MC intersects both AVC and ATC at their lowest points separately.
Step-by-step explanation:
The statement that the minimum point of the AVC curve occurs where it intersects the MC curve is false. In economic theory, the marginal cost curve (MC) intersects the average variable cost curve (AVC) at the minimum point of AVC, and it also intersects the average total cost curve (ATC) at the minimum point of the ATC. However, these are two distinct points. When MC is below ATC or AVC, it pulls the average down, meaning that the production of an additional unit will reduce the overall average costs. Conversely, if MC is above ATC or AVC, the production of an additional unit will increase the overall average costs. The MC curve intersects the AVC and ATC curves at their respective lowest points, signaling a transition between decreasing and increasing average costs.