Which statement is FALSE?
A)When the marginal product of labor is upward sloping,the marginal cost curve is upward sloping.
B)The average fixed cost curve is downward sloping and approaches the horizontal axis as output increases.
C)The marginal cost curve intersects the average variable cost curve at the minimum of average variable cost.
D)When the marginal cost curve is above the average cost curve,the average cost curve is upward sloping.

Question

Quizplus · Accepted Answer

The statement A is false because when the marginal product of labor is increasing (upward sloping), the marginal cost of production is actually decreasing (downward sloping), not upward sloping. This is due to the inverse relationship between the marginal product of labor and marginal cost.

Which Statement Is FALSE