LRE. After a decrease in AD, there will immediately be _____

The higher is the tax on productive activity, the more likely that people will attempt to evade those taxes by diverting their economic activity from the formal, reported economy to an underground, "off-the-books" economy

Indicate whether the statement is true or false

Refer to the above table. At what quantity of labor does the average variable cost curve start to increase?

A. after 3 units B. after 6 units C. after 1 unit D. after 2 units