Question

State whether the following statements are ture or false. Give reasons.
(1) As output increases, Average Cost (AC) tends to be closer to Average Varibale Cost
(AVC)
(ii) Average Cost (AC) is more consistent than Marginal Cost (MC)
When Marginal Revenue (MR) is zero, Average Revenue becomes maximum
​

Answer 1

Explanation:

1)Average Cost (AC) tends to be closer to Average Varibale Cost

1)Average Cost (AC) tends to be closer to Average Varibale Cost(AVC)

1)Average Cost (AC) tends to be closer to Average Varibale Cost(AVC)2)When Marginal Revenue (MR) is zero, Average Revenue becomes maximum