AVC can fall even when MC is rising, provided:

CA Foundation · Business Economics · MTP · January 2026
AVC can fall even when MC is rising, provided:
(A) A. MC < AVC
(B) B. MC > AVC
(C) C. MC = AVC
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. MC < AVC

Topics: Theory of Production and Cost

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