What is one of the most important properties of cost curves
A)For most producers, the average-total-cost curve never crosses the marginal cost curve.
B)The average-fixed-cost curve must eventually rise.
C)The average-total-cost curve first rises, then falls with increased output.
D)The marginal-cost curve eventually rises with the quantity of output.

Question

Quizplus · Accepted Answer

The marginal-cost curve eventually rises with the quantity of output due to the law of diminishing returns, which states that adding more of one factor of production, while holding others constant, will at some point yield lower per-unit returns.

What Is One of the Most Important Properties of Cost