Question

Consider the following statements: A. Average Fixed Cost always decline with increase in output, B. Marginal Cost intersects AVC and ATC at their minimum point, C. Learning Curve implies cost rises with accumulated output, D. In the long run, all costs are variable, E. Longrun Average Cost is envelope of Shortrun Average Cost curves.

• A. A, B, C, D Only
• B. A, B, D, E Only
• C. A, B, C, E Only
• D. A, B, C Only

Hint:

Learning curve usually means cost decreases with experience. LAC is the envelope of SAC curves.

Answer 1

The Correct Option is B