Q.
1
a. In the short – run, ΔTFC = 0, therefore ΔTC = ΔTVC
b. If decrease in AFC < increase in AVC, then AC decreases
c. If decrease in AFC = increase in AVC, AC remains constant
d. If decrease in AFC > increase in AVC, then AC increases
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A
a and c
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B
b and c
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C
b and d
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D
a and d