Define and graph fixed, variable, average, and marginal costs.
-Indicate true, false, or uncertain for the following statements, and explain why:
a. AVC = ATC in the short run.
b. AFC + AVC + MC = ATC.
c. Average fixed cost falls as production proceeds through stages I and II; it begins to rise in stage III.
d. Marginal cost intersects the minimum point of the average fixed cost.
e. ATC = AVC = AFC at Q = 0.
f. In the short run, an increase in factor prices causes the marginal cost to intersect the average total cost at a higher level of output.

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The Answer of Define and graph fixed, variable, average, and marginal costs.
-Indicate true, false, or uncertain for the following statements, and explain why:
a. AVC = ATC in the short run.
b. AFC + AVC + MC = ATC.
c. Average fixed cost falls as production proceeds through stages I and II; it begins to rise in stage III.
d. Marginal cost intersects the minimum point of the average fixed cost.
e. ATC = AVC = AFC at Q = 0.
f. In the short run, an increase in factor prices causes the marginal cost to intersect the average total cost at a higher level of output.

Define and Graph Fixed, Variable, Average, and Marginal Costs