Which of the following statements is true?
A)If AVC is increasing, ATC must be increasing, too.
B)If MC is increasing, then AVC is increasing.
C)ATC reaches minimum before AVC.
D)If AVC and AFC are decreasing, ATC must be decreasing.
E)None of these.

Question

Quizplus · Accepted Answer

If both AVC (Average Variable Cost) and AFC (Average Fixed Cost) are decreasing, then ATC (Average Total Cost), which is the sum of AVC and AFC, must also be decreasing.

Which of the Following Statements Is True