What is true, in the short run, if marginal product is at its maximum?
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

If marginal product is at its maximum, it means that each additional unit of input is producing the greatest amount of output possible. This implies that marginal cost is at its minimum, because we are getting the most output per unit of input, so the cost of each additional unit of input is lower.

What Is True, in the Short Run, If Marginal Product