Graph 13-3
-Refer to Graph 13-3.If marginal cost is rising, then:
A)marginal product must be rising
B)marginal product must be falling
C)average variable cost must be falling
D)average fixed cost must be rising

Question

Graph 13-3 
-Refer to Graph 13-3.If marginal cost is rising, then:
A)marginal product must be rising 
B)marginal product must be falling 
C)average variable cost must be falling 
D)average fixed cost must be rising

Quizplus · Accepted Answer

If marginal cost is rising, it means that each additional unit of output is becoming increasingly expensive to produce. This can only happen if the marginal product of labor is falling, as the additional inputs of labor are becoming less and less efficient at producing output. Therefore, the best choice is (B) - marginal product must be falling.

Graph 13-3 -Refer to Graph 13-3.If Marginal Cost Is Rising, Then