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Cost Curves · Question 60 of 62

Question 60

HardOriginal question

Assertion (A): The minimum of the MC curve comes before the minimum of the AVC curve.

Reason (R): AVC keeps falling as long as MC is below it, even after MC starts to rise.

Options for question 60

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Both are true: in the schedule MC is lowest at 4 units (₹14), AVC at 4–5 units (₹20).

  2. R explains A: rising MC keeps pulling AVC down until it reaches AVC.

Concept
MC's minimum comes first
Typical time
100 s
Your time
—
The rule this testsThe shapes of the cost curves
Practise this chapter →

Ten questions from Cost Curves, at your own pace.

Practise this chapter →

Ten questions from Cost Curves, at your own pace.