State whether the following ar True or False giving reasons:

1. when MR is constant and not equal to zero then TR will always be constant.

2. As soon as Mc starts rising, AVC also starts rising.

3. TP also increases whether there is increasing returns to a factor or diminishing returns to a factor.

1.false when MR is constant and not equal to Zero TR increases at a constant rate.

2. FAlse AVC can fall when MC is rising provided that MC curve lies below AVC curve when MC ius rising.

3. True. TP increases at an increasing rate when there are increasing returns to a factor and at a diminishing rate when there arediminishingreturns to a factor.

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