Which of the following statements best describes the marginal cost curve?
A) It generally falls at first and then rises as output expands.
B) It is a vertical line.
C) It intersects the average variable cost curve from below at its maximum point.
D) It generally rises at first and then declines as output expands.

Question

Quizplus · Accepted Answer

The marginal cost curve typically decreases initially due to economies of scale and then increases as production expands due to the law of diminishing returns.

Which of the Following Statements Best Describes the Marginal Cost