Which of the following statements is false?
A)When the marginal product of labor is upward sloping, the marginal cost curve is upward sloping.
B)The average fixed cost curve is downward sloping and approaches the horizontal axis.
C)The marginal cost curve intersects the average variable cost curve at the minimum of average variable cost.
D)When the marginal cost curve is above the average cost curve, the average cost curve is upward sloping.

Question

Quizplus · Accepted Answer

This statement is false. When the marginal product of labor is upward sloping, the marginal cost curve is downward sloping. This is because as more labor is added, marginal product decreases while marginal cost increases.

Which of the Following Statements Is False