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1. As a firm's output increases, average fixed cost (FC/Q) should decline. It can never increase. True or false, and why?

2. Describe why the following statement is false: If firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) should be rising also.

3. Describe why following statement is false: If firm's output is increasing and marginal cost is rising, then average variable cost (VC/Q) should be rising also.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M922964

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