Re: jnu 2017 answers sss, let's discuss

Posted by soimmoi on Dec 07, 2017; 3:44am
URL: http://discussion-forum.276.s1.nabble.com/jnu-2017-answers-sss-let-s-discuss-tp7608176p7608402.html

A perfectly competitive firm produces  100 units of output. It faces a total ftxed cost
ofrs 5,000. The average variable cost (AVC) of production at this output is 10. When
production rises to 101, the total cost of production is rs 6,070. Then at this point
(a) the AC curve must be falling
(b) MC<AVC
(c) the MC curve lies above the AC curve
(d) the firm should exit the industry