Which statement is FALSE?
A) When the marginal product of labour is upward sloping,the marginal cost curve is upward sloping.
B) The average fixed cost curve is downward sloping and approaches the horizontal axis as output increases.
C) The marginal cost curve intersects the average variable cost curve at the minimum of the average variable cost.
D) When the marginal cost curve is above the average cost curve,the average cost curve is upward sloping.

Question

Quizplus · Accepted Answer

When the marginal product of labor is upward sloping, it means that each additional unit of labor adds more to output than the previous one, which typically leads to a downward sloping marginal cost curve, not upward.

Which Statement Is FALSE