The Figure Given Below Shows Cost Curves of a Firm

question 59

Multiple Choice

The figure given below shows cost curves of a firm.Figure: 8.2
In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
-Which of the following is not correct for an individual firm?

• A)If the average variable cost (AV
• C) is decreasing, average total cost (AT
• C) must be decreasing.
• B)AVC reaches minimum before ATC.
• C)If ATC is increasing, AVC must be increasing.
• D)If AVC is increasing, marginal cost (M
• C) is increasing.
• E)If average fixed cost (AF
• C) is decreasing, ATC must be decreasing.

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Definitions:

Secure Attachment

A type of emotional bond in relationships characterized by trust and a sense of safety with another person.

Caregiver

A person who provides care and support to someone in need, such as a child, elderly, or sick individual, often involving physical and emotional assistance.

Maintains Contact

The act of keeping in touch with someone or something, ensuring ongoing communication or connection.

Social Referencing

Seeking information about how to react to an unfamiliar or ambiguous object or event by observing someone else’s expressions and reactions. That other person becomes a social reference.