Which of the following statements is correct?
A)For most producers, the average total cost curve never crosses the marginal cost curve.
B)The average fixed cost curve must eventually rise.
C)The average total cost curve first rises, then falls with increased output.
D)The marginal cost curve eventually rises with the quantity of output.

Question

Quizplus · Accepted Answer

The marginal cost curve typically rises with increased output due to diminishing returns, as each additional unit of output becomes more costly to produce.

Which of the Following Statements Is Correct