Assertion (A): The minimum point of AC lies to the right of the minimum point of AVC.
Reason (R): AFC keeps falling as output rises.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true: in the schedule AVC is lowest at 4–5 units and AC at 5–6 units.
Because AFC is still falling when AVC starts to rise (R), AC goes on falling a little longer (A).

Concept: Why minimum AC comes later
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsThe shapes of the cost curves

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Ten questions from Cost Curves, at your own pace.

Assertion (A): The minimum point of AC lies to the right of the minimum point of AVC.Reason (R): AFC keeps falling as output rises.

Explanation

Assertion (A): The minimum point of AC lies to the right of the minimum point of AVC.
Reason (R): AFC keeps falling as output rises.