The marginal cost curve:

Question

Quizplus · Accepted Answer

Option A is correct because the marginal cost curve is U-shaped due to the law of diminishing marginal returns. Option B is correct because when marginal product falls, the cost of producing each additional unit rises, leading to an increase in marginal cost. When marginal product rises, the cost of producing each additional unit falls, leading to a decrease in marginal cost. Option C is correct because the marginal cost curve intersects the average total cost curve at its lowest point, which is also the point of minimum efficient scale. Therefore, all three statements are true, and the correct answer is D.

The Marginal Cost Curve