As output rises:A. AFC rises.B. AFC falls.C. AFC remains the same.D. There is no

As output rises:A. AFC rises.B. AFC falls.C. AFC remains the same.D. There is no way of determining what happens to AFC.Question 2When average total cost is declining then:A. marginal cost must be less than average total cost.B. marginal cost must be greater than average total cost.C. average total cost must be greater than average fixed cost.D. average variable cost must be declining.Question 3The law of diminishing returns:A. is completely invalid.B. states that if units of a resource are added to a fixedproportion of other resources eventually marginal output willdecline.C. states that if any two resources are combined production willfall.D. states that profit margins decline as output rises.Question 4If fixed cost is $8000 variable cost is $5000 at an output of 2and $9000 at an output of 3 how much is marginal cost at anoutput of 3?