Which of the following statements is true?
A) The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise.
B) The marginal product is the change in total output by adding one additional unit of a fixed input.
C) Fixed costs are costs which vary with the output level.
D) When marginal productivity of a variable input is falling then marginal costs of production must be rising.
E) When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
Correct Answer:
Verified
Q92: If total cost is $1,000 when output
Q159: Exhibit 7-9 Cost schedule for firm
Q160: Exhibit 7-8 Costs schedules for producing
Q161: Each potential short-run average total cost curve
Q162: Which of the following best describes marginal
Q163: In the long run, total fixed cost
Q165: If the minimum points of all the
Q166: Exhibit 7-13 Cost curves Q167: Exhibit 7-12 Cost schedule for producing Q168: When the curve that envelops the series![]()
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