When the marginal product curve is ________,the marginal cost curve is falling.When the average product curve is ________,the average variable cost curve is falling.Maximum MP occurs at the same output as ________.Maximum AP occurs at the same output as ________.
A)rising;rising;maximum MC;maximum AVC
B)falling;falling;minimum MC;minimum AVC
C)rising;rising;minimum MC;minimum AVC
D)falling;falling;maximum MC;maximum AVC
E)rising;rising;minimum MC;minimum ATC

Question

Quizplus · Accepted Answer

When the marginal product curve is rising, the marginal cost curve is falling due to the Law of Diminishing Marginal Returns. When the average product curve is rising, the average variable cost curve is falling due to the spreading effect of fixed costs. Maximum MP occurs at the same output as the point where MP begins to fall (Law of Diminishing Marginal Returns), which also corresponds to the minimum MC point. Maximum AP occurs at the same output as the point where AP begins to fall, which also corresponds to the minimum AVC point. Therefore, option C is the correct choice.

When the Marginal Product Curve Is ________,The Marginal Cost Curve