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Model Paper 2 — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsModel Paper 21 Mark
MCQ
The relationship between AC & MC is
  • A
    AC continues to fall till MC is greater than AC
  • ✓
    AC continues to fall till MC is less than AC
  • C
    AC continues to rise till MC is less than AC
  • D
    AC continues to fall till MC is equal to AC
✓

Answer

Correct option: B.
AC continues to fall till MC is less than AC
(b) AC continues to fall till MC is less than AC
Explanation:
When $MC < AC , AC$ falls
When $MC = AC , AC$ is constant and at ita minimum point
When $MC > AC , AC$ rises

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