Arrange the following statements in the context of "U" shaped SAC curve.

(A) SAC is the sum of AVC and AFC.

(B) SAC falls when AVC and AFC decrease.

(C) When the fall in AFC is greater than the rise in AVC and SAC is still falling.

(D) When a rise in AVC becomes greater than the fall in AFC, SAC rises.

Choose the correct answer from the options given below:

Option 1: (A), (B), (C), (D) -> This follows the logical progression: definition of SAC, initial falling phase, middle falling phase, and rising phase.

Option 2: (A), (C), (B), (D) -> Incorrect order as it places the middle phase before the initial phase.

Option 3: (B), (A), (D), (C) -> Incorrect as it starts with behavior before definition and misplaces the phases.

Option 4: (C), (B), (D), (A) -> Incorrect as it starts with middle phase and ends with the definition.

Hence, Option 1: (A), (B), (C), (D) -> The correct logical sequence for explaining the U-shaped SAC curve is: (A) First establish that SAC = AVC + AFC (definition); (B) Initially, SAC falls when both AVC and AFC decrease; (C) SAC continues falling when the fall in AFC is greater than the rise in AVC (middle phase where AVC starts rising but AFC falls faster); (D) Finally, SAC rises when the rise in AVC becomes greater than the fall in AFC (minimum point is crossed). This sequence properly explains the complete U-shaped behavior of the SAC curve from start to finish. -> correct