If the average product of labor curve is rising, i) the average variable cost curve is falling.
Ii) the marginal cost curve is definitely falling.
Iii) the marginal product curve has reached its maximum.
A)i and iii
B)i only
C)ii and iii
D)i, ii, and iii
E)ii only

Question

Quizplus · Accepted Answer

When the average product of labor is rising, the average variable cost is falling because they are inversely related. However, the marginal cost curve is not necessarily falling, and the marginal product curve does not have to be at its maximum.

If the Average Product of Labor Curve Is Rising, I)