Which of the following is true with respect to SMC (Short run marginal cost) and AVC (Average variable cost) ?

A

AVC curve cuts the SMC curve from above at the maximum point of SMC.

B

SMC curve cuts the AVC curve from above at the maximum point of AVC.

C

AVC curve cuts the SMC curve from below at the minimum point of SMC curve.

D

SMC curve cuts the AVC curve from below at the minimum point of AVC.