Which of the following statements is correct?
A) Average total cost is the difference between average variable cost and average fixed cost.
B) Marginal cost measures the cost per unit of output associated with any level of production.
C) When marginal product rises, marginal cost must also rise.
D) Marginal cost is the price or cost of an extra variable input (for example, an additional worker or machine) divided by its marginal product.
Correct Answer:
Verified
Q211: Q212: Answer the question on the basis of Q213: Answer the question on the basis of Q214: Other things equal, if the prices of Q215: Answer the question on the basis of Q217: Other things equal, if the fixed costs Q218: Assume that in the short run a Q219: Answer the question on the basis of Q220: Q221: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents