In the short run, when output rises, which statement is true?
- AAverage fixed cost first falls and then, beyond some point, rises.
- BAverage variable cost increases as soon as the law of diminishing marginal returns begins to operate.
- CThe minimum point of the average total cost curve occurs at a greater level of output than the minimum point of the average variable cost curve.
- DWhen marginal cost reaches its minimum point, average variable cost must be greater than average fixed cost.