When the marginal physical product is rising
A) total cost is falling.
B) average total cost is increasing.
C) marginal cost is falling.
D) marginal cost is rising.

Question

Quizplus · Accepted Answer

When the marginal physical product is rising, it implies that the additional production is adding more output than the previous unit. This leads to a decrease in marginal cost, as the cost of producing an additional unit decreases due to the increase in productivity. Therefore, choice C is the correct answer.

When the Marginal Physical Product Is Rising