Which of the Following Cost Relationships Hold in the Short-

question 21

Multiple Choice

Which of the following cost relationships hold in the short- run?

• A)If ATC exceeds AVC, AVC is falling.
• B)If AVC is constant, then ATC is also constant, but at a higher level.
• C)For positive FC, AVC approaches ATC as output increases.
• D)If SRMC is rising, both AVC and AFC are rising.

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