Question
Even when marginal cost is rising, average variable cost may fall.

Answer

True. Even when marginal cost is rising, average variable cost may fall, as corresponding to output range MQ in . AVC will fall even when MC is rising, so long as MC < AVC.
Image

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free