Which of the following statements is not true?
A)Average variable cost falls,reaches a minimum and begins to rise.
B)Average total cost falls,reaches a minimum and begins to rise.
C)Average fixed cost falls,reaches a minimum,and begins to rise.
D)Marginal cost falls,reaches a minimum and begins to rise.

Question

Quizplus · Accepted Answer

Average fixed cost continually decreases as output increases, because fixed costs are spread over a larger number of units. It does not reach a minimum and then begin to rise; instead, it keeps decreasing.

Which of the Following Statements Is Not True