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<p>Answer the questions based of the following information.</p> <p>ABC Ltd. produces widgets for which the demand is unlimited and they can sell all of their production.The graph below describes the monthly variable costs incurred by the company as a function of the quantity produced. In addition, operating the plant for one shift results in a fixed monthly cost of Tk. 800. fixed monthly costs for second shift operation are estimated at Tk. 1200. Each shift operation provides capacity for producting 30 widgets per month.</p> <p><img alt="" class="file-default media-element" src="https://sothik.com/files/styles/responsive_logobreakpoints_theme_bootstrap_screen-md-max_2x/public/1_3.png?itok=rGz6i0T0"></p> <p>Note : Average unit cost, AC = Total monthly costs/ monthly production, and marginal cost, MC is the rate of change in total cost for unit change in quality produced. &lt;/p&gt;</p> <p>From the data provided it can be infrered that, for productuon levels in the range of 0 to 60 units :</p>

1. A Initially MC is a decreasing function quantity, attains a minimum and then it is an increasing of production quantity.
2. B MC is a increasing function of production quantity.
3. C MC is an increasing function of production quantity.
4. D None of above