In the short run, if marginal product is at its maximum, then
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

When the marginal product is at its maximum, it means that adding one more unit of input is resulting in the highest level of output. This indicates that the marginal cost is at its minimum, as each additional input is contributing efficiently to the production process. Therefore, option C is the correct choice. Option A is incorrect because the maximum marginal product does not directly relate to average cost. Option B is incorrect because it refers only to the variable cost, whereas the question does not specify whether it is referring to variable or total cost. Option D is incorrect because total cost is not necessarily at its maximum when marginal product is at its maximum.

In the Short Run, If Marginal Product Is at Its