In the short run, if the marginal product is at its maximum, then the
A)average cost is at its minimum.
B)average variable cost is at its minimum.
C)marginal cost is at its minimum.
D)total cost is at its maximum.

Question

Quizplus · Accepted Answer

When the marginal product is at its maximum, it means that each additional unit of input is producing the greatest amount of output possible. This indicates that the marginal cost of producing that additional unit of output is at its minimum because the inputs are being utilized efficiently. Therefore, the correct answer is C) marginal cost is at its minimum.

In the Short Run, If the Marginal Product Is at Its