The marginal cost curve:
A) first rises and then declines.
B) rises when the average total cost curve lies above the average variable cost curve.
C) rises when the point of diminishing marginal productivity is reached.
D) declines until average total cost increases.

Question

Quizplus · Accepted Answer

The marginal cost curve rises when the point of diminishing marginal productivity is reached because additional units of output become more costly to produce as resources are used less efficiently.

The Marginal Cost Curve