Which two of the following statements are correct?
I. In the short - run, ∆TFC = 0, therefore ∆TC = ∆TVC
II. If decrease in AFC III. If decrease in AFC = increase in AVC, AC remains constant
IV. If decrease in AFC > increase in AVC, then AC increases
Choose the correct answer from the options given below
Which two of the following statements are correct?
I. In the short - run, ∆TFC = 0, therefore ∆TC = ∆TVC
II. If decrease in AFC III. If decrease in AFC = increase in AVC, AC remains constant
IV. If decrease in AFC > increase in AVC, then AC increases
Choose the correct answer from the options given below Correct Answer I and III
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Feb 20, 2025