Long term success through customer satisfaction

The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

A) TFC curve (not shown) slopes down. B) AFC curve (not shown) slopes down. C) MC curve is rising. D) AVC curve is rising.

When economists speak of a firm's costs, they are usually excluding the opportunity costs

a. True b. False Indicate whether the statement is true or false