Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases.If we are at an output where marginal cost is increasing, then:
A)marginal product must be increasing.
B)average variable cost must be increasing.
C)average total cost must be increasing.
D)marginal product must be decreasing.

Question

Quizplus · Accepted Answer

When marginal cost is increasing, it indicates that marginal product is decreasing due to the law of diminishing returns.

Suppose the Marginal Cost Curve in the Short Run First