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

  • A

    a and c

  • B

    b and c

  • C

    b and d 

  • D

    a and d