Economics 9708 · AS & A Level · 7.5

7.5 — practice question

A business raises its output level from zero. What effect will this have on its short-run marginal cost (MC), average total cost (ATC) and average fixed cost (AFC)?

  • AMC: fall then rise; ATC: fall then rise; AFC: fall
  • BMC: fall then rise; ATC: rise then fall; AFC: rise
  • CMC: rise then fall; ATC: fall then rise; AFC: fall
  • DMC: rise then fall; ATC: rise then fall; AFC: rise

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