Choose the statement that is correct. A. The MC curve intersects the AFC, AVC, and ATC curves at their minimums. B. Initially as output increases, average variable cost decreases, so average total cost decreases and the ATC curve slopes downward. Average fixed cost remains unchanged. C. The ATC curve eventually slopes upward because average variable cost eventually increases. D. An increase in output always increases average total cost.

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.