Which of the following statements is true?
A)The marginal cost curve has an upward-sloping portion to it because of the law of diminishing marginal returns.
B)The marginal cost curve cuts the ATC curve at its highest point.
C)When marginal cost is rising, so must average total cost be rising.
D)A decline in marginal cost causes the MPP (of the variable input) to decline.
E)none of the above

Question

Quizplus · Accepted Answer

The marginal cost curve typically has an upward-sloping portion due to the law of diminishing marginal returns, which states that adding an additional factor of production results in smaller increases in output.

Which of the Following Statements Is True