Answer:
the minimum point on the AVC curve
Explanation:
The average variable cost denoted as AVC represent all the variable costs as electricty, water, gas, etc. divided by the output produced.
[tex] AVC=\frac{VC}{Q}[/tex]
Where VC is the variable cost and Q represent the output produced.
In the short-run, a firm can "increase profits if the marginal revenue obtained from selling a product if exceeds the marginal cost of making that product".
And the lowest point on a competitive firm short run needs to correspond to the minimum point on the AVC curve since we assume that we are in a competitive firm's scenario, all the prices and variable costs needs to be as lowest possible in order to be competitive.
