Exhibit 8-5
-Refer to Exhibit 8-5. At an output level of K,
A)TC is area AEHF.
B)ATC exceeds MC by amount $G -$F.
C)AFC is amount $D- $I.
D)ATC and AVC are both falling because MC is less than both.
E)AVC exceeds MC by amount $H- $F.

Question

Exhibit 8-5 
-Refer to Exhibit 8-5. At an output level of K,
A)TC is area AEHF. 
B)ATC exceeds MC by amount $G -$F. 
C)AFC is amount $D- $I. 
D)ATC and AVC are both falling because MC is less than both. 
E)AVC exceeds MC by amount $H- $F.

Quizplus · Accepted Answer

When MC is less than both ATC and AVC, it pulls both averages down, indicating they are falling.

Exhibit 8-5 -Refer to Exhibit 8-5. at an Output Level of K