If marginal cost is rising,what must be happening
A)Average variable cost must be falling.
B)Average fixed cost must be rising.
C)Marginal product must be falling.
D)Marginal product must be rising.

Question

Quizplus · Accepted Answer

When marginal cost is rising, it means that the cost of producing one more unit of output is increasing. This could happen because the marginal product of the variable input (e.g. labor) is falling, meaning that each additional unit of input is producing less and less output. As a result, the cost per unit is increasing, leading to a rising marginal cost. Therefore, the correct choice is C, which states that the marginal product must be falling. The other choices are not necessarily related to a rising marginal cost.

If Marginal Cost Is Rising,what Must Be Happening