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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

The Figure Given Below Shows Cost Curves of a Firm