Giving reasons state true or false. 1) TP will increase only when MP increases. 2)The differnece between ATC AVC decreases in the level of output. 3)Greater production always means greater revenue.

1)  False. Total product will also increase when marginal product decreases.
2) True. The difference between ATC and AVC is AFC. AFC declines with increase in the output level.
3) False.  Despite of greater production, a fall in price(AR) leads to lower TR.

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