Answer
the AVC<MC so the MC AVC and MC are increasing as the MC cuts AVC at minimum.
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AFC=FC/q
=90/6
=15
ATC=AFC+AVC=15+15=30
The ATC is decreasing up to the MC<ATC
ATC=30 and MC=20 then the ATC is decreasing at q=6 but it may not be true for q=10 as the MC is increasing
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Option d
Only I and III must be true.
8. A firm has standard shaped cost curves where FC = 90. MC = 20 and...
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