When the average physical product is rising
A) total cost is falling.
B) average total cost is increasing.
C) average variable cost is falling.
D) marginal cost is always rising.

Question

Quizplus · Accepted Answer

When the average physical product is rising, it means that each additional unit of input is producing more output than the units before. This increased efficiency typically leads to a decrease in average variable cost, as the cost of producing each additional unit is spread over a larger number of outputs.

When the Average Physical Product Is Rising