Page 6 - HA-COST
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                       5.  If TC at zero level of output is 240. What will be AAFC of 2  unit of
                          output?
                          (3/ 4 MARKS QUESTION)
                          1.  Explain diagrammatically the relationship between AC and MC?

                          2.  “MC  is variable cost only”.Explain.
                          3.  What does the AFC curve look like?Why does it look so?
                          4.  Why is the short run marginal cost u-shaped?

                          5.  Explain diagrammatically the relationship bet6ween AC and AVC.



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