Question

8. A perfectly competitive firm, which may or may not be in equilibrium, has the following situation in the short run, at its current level of output: ACP=MR=MC>AVC>0. We can say the following for sure about the cost curves of this firm: (A) AVC is rising, AC is falling, and MC is rising at the current output. (B) AVC is falling, AC is rising, and MC is rising at the current output. (C) AVC is at its minimum, AC is rising, and MC is rising at the current output. (D) AVC is at its minimum, AC is falling, and MC is rising at the current output. (E) AVC is rising, AC is at its minimum, and MC is rising at the current output. (F) AVC is falling, AC is at its minimum, and MC is rising at the current output. (G) AVC is rising, AC is falling, and MC is falling at the current output. (H) AVC is falling, AC is rising, and MC is falling at the current output. (1) None of the above