Which of the following statements about marginal cost is correct?
A)When the marginal product of a variable input is rising,the marginal cost will fall.
B)When marginal cost equals average cost,average cost is at its maximum.
C)In the short-run,the marginal cost curve is parallel to the average variable cost curve.
D)When marginal cost is falling,total fixed cost is rising.

Question

Quizplus · Accepted Answer

When the marginal product of a variable input is rising, it means that each additional unit of input is adding more output than the previous unit. This leads to a decrease in marginal cost because the cost of producing an additional unit of output is lower when the input is more productive. As a result, the marginal cost curve slopes downwards initially.

Which of the Following Statements About Marginal Cost Is Correct