A rising marginal cost curve reflects a falling ________ curve.
A) total product
B) marginal product
C) average fixed cost
D) total cost
E) long-run average cost

Question

Quizplus · Accepted Answer

A rising marginal cost curve indicates that each additional unit of output costs more to produce than the previous one, which directly reflects a falling marginal product curve. This is because the marginal product of an input is the additional quantity of output that is produced by using one more unit of that input. When the marginal product falls, it means that the efficiency of production is decreasing, leading to higher costs for additional units of output, hence the rising marginal cost.

A Rising Marginal Cost Curve Reflects a Falling ________ Curve