The marginal cost curve cuts the average cost curve only at its minimum point because it is only here that MC = AC.
The marginal cost, or price of producing more, is the variation in total cost that results from increasing the quantity produced in economics. It can refer to an increase of one unit of output in some settings and to the rate of change of total cost as output increases by a tiny amount in others.
The marginal cost is the slope of the total cost or the rate at which it rises with output, to be measured in dollars per unit while total cost is shown to be in dollars. The difference between average cost, which is the entire cost divided by the number of units produced, and marginal cost is the latter.
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