If the marginal product of the variable input rises and then falls,the MC curve will:
A)rise and then fall.
B)fall and then rise.
C)downward sloping throughout.
D)not depend upon the path of the marginal product of the variable input.

Question

Quizplus · Accepted Answer

The MC (Marginal Cost) curve typically falls and then rises as the marginal product of the variable input initially increases (due to increased efficiency or economies of scale) and then decreases (due to the law of diminishing returns).

If the Marginal Product of the Variable Input Rises and Then