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.