When a firm's marginal cost is rising, we know that
A) average total cost must be rising.
B) marginal product must be falling.
C) average variable cost must be rising.
D) average fixed cost must be rising.
E) marginal product must be zero.

Question

Quizplus · Accepted Answer

When marginal cost is rising, it typically indicates that marginal product is falling due to the law of diminishing returns.

When a Firm's Marginal Cost Is Rising, We Know That