MIE-EMI-TEST

The TC curve is parallel to the VC curve as the vertical distance between the two curves is equal to fixed cost.

• True

• False

• Ambiguous

The AFC curve is downward sloping.

• True

• False

• Ambiguous

The vertical distance between the ATC curve and the AVC curve falls with output.

• True

• False

• Ambiguous

The AFC curve lies below the AVC curve.

• True

• False

• Ambiguous

Both the FC curve and the MFC curve are horizontal lines.

• True

• False

Marginal total cost is equal to marginal variable cost.

• True

• False

• Ambiguous