Which of the Following Statements Is Necessarily False

question 50

Multiple Choice

Which of the following statements is necessarily false?

• A)AP falls when it is less than MP.
• B)AFC is horizontal.
• C)MP is constant when it equals AP.
• D)MP falls when it exceeds AP.

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Definitions:

M

A symbol often representing money supply in economic discussions, including various measures like M1, M2, and M3.

Q

Quantity, frequently used in economic equations and discussions to denote the amount of goods produced or consumed.

PQ

The product of price (P) and quantity (Q), often used in economics to calculate total revenue or expenditure.

P

Typically refers to "Price" in economic models, representing the monetary value assigned to a good or service in the market.