36) Refer to Figure 7.1. At output level Q2 . A) average fixed cost is increasing. B) average variable cost equals average fixed cost. C) marginal cost is negative. D) average total cost is negative. E) none of the above . Answer: B. Diff: 1. Section: 7.2. 37) Refer to Figure 7.1. At output level Q3 . A) average fixed cost reaches its minimum.