Use the figure below to answer the following questions.

Figure 10.3.2

Refer to Figure 10.3.2, which illustrates short-run average and marginal cost curves. Which one of the following statements is false ?

Question

Use the figure below to answer the following questions. 
  
 Figure 10.3.2

Refer to Figure 10.3.2, which illustrates short-run average and marginal cost curves. Which one of the following statements is  false ?

Answer

Average fixed cost decreases with output.

Answer

Curve  D  is the marginal cost curve.

Answer

Line  B  comes closer to line  C  as output increases because of a decrease in average fixed cost.

Answer

The vertical gap between curves  B  and  C  is equal to average fixed cost.

Answer

The vertical gap between curves  B  and  C  is equal to average variable cost.

Crowdly