If the marginal cost curve for a firm first declines and then rises, it follows that the MPP of the variable input
A)is constant.
B)first declines and then rises.
C)first rises and then declines.
D)continually declines.
E)none of the above

Question

Quizplus · Accepted Answer

The marginal cost curve first declining and then rising is indicative of the law of diminishing returns, where the marginal physical product (MPP) of the variable input first rises due to increasing returns and then declines as the input becomes less efficient.

If the Marginal Cost Curve for a Firm First Declines