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

When the marginal product of labor is upward-sloping, it means that each additional unit of labor adds more to output than the previous one, which typically leads to a downward-sloping marginal cost curve, not upward-sloping.

Which of the Following Statements Is FALSE