Assume that at the current level of output a firm's marginal cost and average variable cost of production are both decreasing.Based on this,we can conclude that the marginal product and average product of the firm's variable input(s)are both increasing.

Question

Quizplus · Accepted Answer

When marginal cost and average variable cost are both decreasing, it indicates that the firm is experiencing increasing marginal and average returns, respectively. This means that the marginal product and average product of the variable input(s) are both increasing. Therefore, the statement is true.

Assume That at the Current Level of Output a Firm's