Which of the following statements is false?
A)If the MC curve is rising, the AVC curve must be rising.
B)If MC is below ATC, ATC must be falling.
C)If MC is above AVC, then AVC must be rising.
D)If MC is above ATC, then ATC must be rising.

Question

Quizplus · Accepted Answer

The statement "If the MC curve is rising, the AVC curve must be rising" is false because the AVC curve can be falling, constant, or rising depending on the specific cost conditions and production levels, regardless of the MC curve's direction. The MC curve intersects the AVC and ATC curves at their minimum points, not necessarily when they are rising.

Which of the Following Statements Is False