The marginal cost curve is U-shaped.Over the range of output for which the marginal cost is falling as output increases,the marginal product is
A) increasing.
B) decreasing.
C) constant.
D) probably changing, but there is no stable relationship between the marginal cost and the marginal product.
E) not defined.

Question

Quizplus · Accepted Answer

When the marginal cost is falling as output increases, it indicates that each additional unit of output is being produced more efficiently than the last. This efficiency improvement is due to an increasing marginal product, meaning that each additional input is producing more output than before.

The Marginal Cost Curve Is U-Shaped