Assertion (A): The AFC curve touches the quantity axis at a large enough output.
Reason (R): TFC is positive in the short run.

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 D

Correct answer: D

A is false: AFC = TFC ÷ q is never zero while TFC is positive; it only approaches the axis.
R is true.

Concept: AFC never touches the axis
Typical timeTypical: 70 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 AFC curve touches the quantity axis at a large enough output.Reason (R): TFC is positive in the short run.

Explanation

Assertion (A): The AFC curve touches the quantity axis at a large enough output.
Reason (R): TFC is positive in the short run.