At which point does the SMC curve intersect the SAC curve? Give reason in support of your answer.
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At which point does the SMC curve intersect the SAC curve? Give reason in support of your answer.
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SMC curve intersects SAC curve at its minimum point. This is because as long as SAC is falling, SMC remains below SAC and when SAC starts rising, SMC remains above SAC. SMC intersects SAC at its minimum point P, where SMC = SAC.
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