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      Question

      What happens to average fixed cost (AFC) when marginal

      cost increases?
      A AFC increases Correct Answer Incorrect Answer
      B AFC decreases Correct Answer Incorrect Answer
      C AFC remain constant Correct Answer Incorrect Answer
      D AFC first increases and then decreases Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      "This graph explains the relationships of various costs with increase in the output"

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