When a firm's marginal cost is rising,we know that
A)average fixed cost must be rising.
B)average variable cost must be rising.
C)average total cost must be rising.
D)marginal product must be zero.
E)marginal product must be falling.

Question

Quizplus · Accepted Answer

When marginal cost is rising, it typically indicates that the marginal product of an input is falling, due to the law of diminishing returns.

When a Firm's Marginal Cost Is Rising,we Know That