One of the most important properties of cost curves is that:
A)the average fixed cost must eventually rise
B)the average total cost curve first rises, then falls with increased output
C)for most producers, the average total cost curve must never cross the marginal cost curve
D)the marginal cost eventually rises with the quantity of output

Question

Quizplus · Accepted Answer

The marginal cost curve typically rises after a certain point due to the law of diminishing returns, which states that adding an additional factor of production results in smaller increases in output.

One of the Most Important Properties of Cost Curves Is