Explanation:

Let’s break down each option:

- Option 1: ATC & AVC never intersect each other

That’s true. ATC (Average Total Cost) is always above AVC (Average Variable Cost), since ATC = AVC + AFC. They never actually cross.

- Option 2: ATC is greater than AVC by the amount of AFC

Exactly. AFC (Average Fixed Cost) is the difference between ATC and AVC at every output level.

- Option 3: MC cuts AVC at its minimum point

Also true. Marginal Cost always intersects both AVC and ATC at their lowest point — this is a standard result in cost curves.

- Option 4: All of these

Option 4 is correct—every statement above checks out.